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What has EEI Done for You Lately, Little Ratepayer?

6/26/2017

3 Comments

 
The Edison Electric Institute is a trade association for investor owned electric utilities.  It's mission and vision:
Our Mission

The Edison Electric Institute (EEI) is the association that represents all U.S. investor-owned electric companies. Our members provide electricity for 220 million Americans, and operate in all 50 states and the District of Columbia. As a whole, the electric power industry supports more than 7 million jobs in communities across the United States. In addition to our U.S. members, EEI has more than 60 international electric companies as International Members, and hundreds of industry suppliers and related organizations as Associate Members.
 
Organized in 1933, EEI provides public policy leadership, strategic business intelligence, and essential conferences and forums.

Our Vision
EEI will be the best trade association.

We will be the best because we are committed to knowing our members and their needs. We will provide leadership and deliver services that consistently meet or exceed their expectations.

We will be the best because we will attract and retain employees who have the ambition to serve and will empower them to work effectively as individuals and in teams.

Above all, we will be the best trade association because, in the tradition of Thomas Edison, we will make a significant and positive contribution to the long-term success of the electric power industry in its vital mission to provide electricity to foster economic progress and improve the quality of life.

That's just a whole lot of business-y sounding jargon for... we lobby, we propagandize, we stick our nose into regulatory proceedings we don't understand, and we do it all for the purpose of increasing investor owned utility profits!

Does any of that sound like something that benefits you, little ratepayer?  No?  Then why are you paying for it in your electric bill?

The Energy and Policy Institute has published a new report detailing how utilities' EEI "dues" end up in electric bills, although ratepayers don't benefit from EEI's activities.

Paying for Utility Politics
How utility ratepayers are forced to fund the Edison Electric Institute and other political organizations

tells the story of the millions of dollars funneled to this organization, and others, by investor owned utilities every year that are, in turn, added to the utility's "cost of service" rate.  A utility's "cost of service" is supposed to include all expenses of the utility necessary to provide your electricity.  The utility also earns a return on its investment for your benefit.  But the Edison Electric Institute doesn't provide any benefits for ratepayers, it only benefits investor owned utilities.  And because some regulators are lazy about examining utility rates, the utility is often successful in passing its expense to fund EEI and other political organizations into the rates you pay.

A utility's political and lobbying expenses aren't a ratepayer burden.  A utility spends its own profits on these things because it cannot be assumed that laws, regulations, and propaganda that benefits the utility also benefits the ratepayer.  Except that utilities have a nasty habit of having little "accidents" where expenses that are clearly political or lobbying find their way into rates.  Sometimes when caught with their hand in the cookie jar, the utility says "oops" and removes the expense from rates.  Other times, they stand there arrogantly stuffing cookies into their gaping maw as fast as they can while stamping their feet and crying that the political expenses really aren't political at all, or that they are entitled to recover them by twisting regulation to make them into something unpolitical.  Honestly, these schmucks are crooked dirty jockeys who drive a crooked horse.
When third-party organizations or public service commission staffs have attempted to protect ratepayers from funding political organizations in recent years, their attempts have met with fierce resistance from the utility companies.
The report's executive summary:
This report explores how regulated utility companies are including their Edison Electric Institute (EEI) annual payments, along with payments to other trade associations, in their operating expenses. The widespread practice forces ratepayers to pay for political and public relations activities with which they may not agree, and from which they do not benefit. It also has the effect of ratepayers subsidizing the political activities of EEI and other trade associations. Utility commissions have a responsibility to protect ratepayers from paying for industry groups and their political work along with public relations activities. But utilities have become adroit at using EEI, and other organizations, to effectively and quietly influence policy while sheltering their shareholders from the bulk of the associated costs. Almost no other political organizations have the luxury of subsidization enjoyed by EEI and other representatives of the regulated utility industry.
You've paid for:

The salary of EEI President Thomas Kuhn, who made $4.1 million in 2015.

EEI's time to make sure that the Federal Energy Regulatory Commission (FERC) “provides compensatory returns on equity that recognize the risks associated with transmission construction."

EEI's education of regulators and consumers advocates on key industry issues, including capital expenditures that highlight the record-high investments in the grid.

Utility dues for The American Gas Association, Nuclear Energy Institute, and the U.S. Chamber of Commerce.

Utility contributions to the Democratic Governors Association; and Republican Governors Association.

EEI's legislative advocacy; regulatory advocacy; advertising; marketing; public relations; legislative policy research; regulatory policy research.

EEI's "litigation efforts".

EEI-sponsored dialogues and forums that brought together FERC commissioners, state policymakers, consumers, Wall Street analysts, and industry leaders to discuss key issues facing the industry.

A "Defend My Dividend" campaign, that secured permanent parity between the tax rates for dividends and capital gains.

A "We Stand For Energy" campaign, to educate and unite more than 250,000 electricity consumers and stakeholders across the country and to advocate for smart energy solutions that ensure electricity remains safe, reliable, affordable, and increasingly clean.


Hunton & Williams LLP and Venable LLP. Hunton & Williams is the counsel for the Utility Air Regulatory Group (UARG), Utility Water Act Group (UWAG), and Waters Advocacy Coalition (WAC). Venable represents the Utilities Solid Waste and Activities Group (USWAG). Since 2008, Hunton & Williams has received $64.7 million from EEI and Venable has received $21.5 million.  These ad-hoc organizations lobby the EPA and other federal interests to roll back clean air and water regulations.

Americans for Prosperity


Congressional Black Caucus/Foundation

Thomas Alva Edison Foundation

American Legislative Exchange Council

EEI's “Lexicon Project,” an opportunity for utilities to assume an “offensive posture” on energy policy and to rebrand the electric utility industry and overcome the negative perceptions consumers have about the lack of progress utilities have made on renewable energy and environmental issues.

American Coalition for Clean Coal Electricity.

There's much, much more in the report, so read it for yourself.

The report recommends

The evidence in this report reveals that EEI is primarily and inherently a political organization, and that much of its work targets policymakers throughout all levels of government to build influence, specifically for their member companies but also for the industry at large. While many states have their established practices of how to code trade association dues, they should revisit outdated guidelines due to the nature of EEI’s modern activities to ensure that they are adequately protecting ratepayers. Throughout the past three decades, some regulators and consumer advocates have acted to protect ratepayers, but scrutiny has waned dramatically. Precedent exists for public officials to act in every state to investigate whether or not EEI’s inherently political work ought to be funded by ratepayers.
Your public utility commission and consumer advocate owe it to you to pick through rate filings and demand that the utility prove ratepayer benefit for the EEI dues it pays, along with other "dues" it pays to political organizations and other groups whose mission is to support investor owned utility profits, not consumer interests.

Thomas Edison would probably be ashamed of these crooks.
3 Comments

Rural America Doesn't Want to Become America's Power Plant

6/26/2017

8 Comments

 
A friend sent me an op ed that cracked the door on a little bit of truth that urban America needs to accept.  Rural America doesn't want to become your power plant.  Donald Trump was in Iowa recently, and issued a Trumpism critical of wind power.  The media jumped on its propaganda pony to point out that Iowa loves wind, and gets 36.6% of its energy from wind.  The story was that Trump was a lone critical voice and that Iowans are happy to reap wind profits and jobs and nobody minds becoming America's power house.  That's just not true, according to the op ed.  There is serious resistance to industrial wind in Iowa and other rural states.  I already know this, but many do not, preferring instead to believe the rosy picture painted by an industry making money hand over fist exploiting rural America.

What's the difference between what happened in West Virginia a hundred years ago and what's happening in the Midwest now?  Not much.  Out-of-state corporations invaded and bought up the land and the people in order to exploit them for corporate gain.  The people were told it was a great opportunity for jobs and tax revenue, and became so dependent on a single industry that they can't survive without it.  Energy became the only game in town, and the politicians and profiteers refused to utter any criticism, despite the reality that it was actually destroying the state.  And then, just like that, energy was no longer sustainable in the state because society had moved on from that particular form of energy.  And the state was left in ruins as the corporations raced on to the next big energy goldmine.  Those who refuse to learn from history are destined to repeat it.

Wind energy relies on tax credits.  The companies who build wind farms are raking in the dough courtesy of the U.S. taxpayer.  When the governmental largess stops, so will the wind farms.  But meanwhile, wind energy companies are desperately, madly, trying to build new tax credit generators while they still can.  And rural America resists.

What was it Donald Trump said?  "I don't want to just hope the wind blows to light up your house and your factory..."  Wind is an intermittent resource.  It doesn't blow constantly at a consistent speed.  If Iowa was 100% dependent on wind energy, homes and factory lights would rise and fall like the wind.  I saw another propaganda blast last week that claimed a European country's train system runs on "100% wind energy."  Untrue.  Electrons are all the same color, whether created by coal or wind, and they're all mixed together when combined on the electric grid.  Otherwise, that train would start and stop, slow down and speed up, based on a gust of wind.  Face it, other forms of energy generation must back up intermittent resources to provide a steady stream of energy.  At some point, wind reaches saturation in a geographic area, and considering that rural America doesn't use a whole lot of power compared to urban America, Iowa may be at its saturation point right now.  But the tax credits are still good for another 3 years, and once a wind farm qualifies, it can draw on that credit for 10 years.  When the last big hurrah of wind gets built in 3 years, and when the 10-year draw of taxpayer profits expires, Iowa is going to be left in a graveyard of broken wind turbines that are too expensive to fix, and without tax credits, it doesn't make sense to replace them.  But the wind industry needs to build NOW, even if Iowa can't use the  power, so the companies want to export it.  And the next thing you know, some cowboy wants to build gigantic transmission lines for export.  While hosting turbines is completely voluntary on the part of the landowner (and some argue that the landowner is paid quite generously for leasing land), cowboy's transmission line wants to use eminent domain to force landowners to host its towers for a pittance.  There's a complete disconnect here -- if wind farms are voluntary, then the infrastructure to enable them should also be voluntary.  But it's not.  And rural America objects to having its productivity and lifestyle sacrificed for benefit of big wind's profits and the environmental dreams of electric consumers in other states.

This article makes a better attempt at balanced coverage.  This is the story that urban America never hears.  And the few who do hear it tell the ones living in wind alley that their criticisms of industrial wind aren't true, or that the should just suck it up, or that criticism of big wind is a sock puppet of the Koch brothers.  As one Iowan commented, you just haven't become effective in your opposition until some arrogant, urban environmentalist accuses you of being funded by the fossil fuel industry.  Nailed it.

Putting aside the politicians and wind farm hosts, and the corporations who fund them with a tiny portion of their profits, all the "support" of big wind comes from urban environmentalists who don't live there.  This is often expressed quite arrogantly by folks who want to save the planet at someone else's expense.  They're condescending, they're blithe, they're arrogant, and they don't want to host energy infrastructure in their own communities.  They're looking for the next patsy, because importing coal-fired power from West Virginia is now just so gauche.  It's not about taking responsibility for their own needs (something rural America is very familiar with), it's about demanding that someone else take responsibility and sacrifice for their needs.  The dictating to rural America about what they must do isn't going over too well.  Rural America isn't some cretinous population easily swayed to paint Tom Sawyer's fence, and they resent being treated as such.  And they will continue to resist urban America until the arrogance stops.  Everybody matters, or nobody matters.  Those who think they're so smart that they can control rural America like a monkey on a leash just can't seem to grasp why they continue to lose.  We must come together on even footing.  If you love wind energy, urban America, put it in your own backyard.  Rural America doesn't want to become your power plant.
8 Comments

A Reporter's Guide To Writing Better Stories About Clean Line

5/14/2017

0 Comments

 
Have you ever noticed that the majority of Clean Line's media is full of glittering generalities, false bravado, and made-up facts?  Does it look like the reporters responsible for those stories failed to balance their coverage with an opposing view, or to ask any relevant questions of Clean Line?  Is it almost as if they simply re-wrote a Clean Line press release without vetting any of the information in it, doing any independent research, or simply engaging their brains?

Now we've created a handy-dandy tool for reporters on assignment to write about Clean Line, in the form of a fun and stimulating word game.

Pertinent Issues That Deserve Attention is chock full of helpful ideas.  Think of it as your own personal Clean Line press kit.
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Get yours here!
mediaworksheet.pdf
File Size: 128 kb
File Type: pdf
Download File

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Bending Physics to Make Money

5/14/2017

1 Comment

 
Is there no limit to the propaganda businessmen will spew in order to profit?

Now we've got Anbaric's Ed Krapels bending physics in order to pimp merchant transmission to... who exactly?  Who is supposed to read this krap and give Ed a bunch of money?

I recently stumbled across this:

Make America (Electrically) Great Again: An Electric Infrastructure Plan For The Trump Team

Because Trump is so inclined to take his "plans" from The Huffington Post.  Right.

This krappy opinion piece is so full of rhetorical buzzwords that a friend suggested we make a drinking game out of it, and other media in the same vein.  Balkanized?  Take a shot!  Green?  Take a shot!  Resilient?  Take a shot!  Modernize?  Take a shot!  Infrastructure?  Take a shot!

Drunk on the floor.  All.The.Time.

As if glittering generalities are the basis for planning and building the greatest machine of modern times -- the electric transmission grid. 

First of all, we need to recognize where krap like this comes from... it comes from the corporations and people who stand to make a profit from grid construction.  It comes from environmental group lawyers who have no electrical engineering experience.  And the worst part?  These people know better!  They know that the grid is planned and operated by federally monitored regional transmission and reliability organizations.  Our grid is constantly expanded and modernized by experienced engineers with an eye toward reliability and price.  It's not about favoring one resource over the other, or putting money in investor pockets.  So when you read krappy articles claiming our grid is costly, rickety, and unreliable, they're just not true.  We don't look to profit-seeking, or politically-motivated entities to plan a grid that puts the most money in someone's pockets, and we shouldn't start now.  Creating a grid based on the need to meet political goals, or put money in corporate pockets, is creating a grid that's not efficient, affordable, or reliable.

Another krappy opinion piece claims that big companies are simply greenwashing when they purchase renewable energy credits and then claim to be environmentally responsible.  I agree.  But I do not agree with the suggested krappy solution of building new transmission lines so that the company can actually use the electricity associated with the RECs it purchases, as if electricity is nothing more than water in a pipe that can be directed to flow to a certain customer.  The problem is the idea of RECs in the first place, not a lack of transmission.  A REC represents the social and environmental attributes of electricity generated.  A company can buy a REC, but that REC can be physically separated from the actual electricity produced.  A generator may sell the actual electricity to another user, and then market the REC to someone else.  That creates two revenue streams for the same electron.   Essentially, it is selling something twice to two different buyers.  It's a swindle of the highest order.

Options to solve that?
1.  Stop unbundling RECs from energy.
2.  Require companies to purchase transmission on the existing system to use the actual energy they purchase.  There ain't no such thing as "cheap" environmental footprint, unless the public believes the greenwashing.

And then there's the unnecessary -- building new private transmission lines just for companies who want to purchase unbundled RECs from far away places.  If we start down that path, with each company supporting its own private transmission line, we're soon going to find wires everywhere.  The more wires and connections added, the more complicated and unreliable the grid becomes.  There's also the problem of clearing a path for private transmission lines on private property owned by others.  That's not a public use.  That's not a public utility.  Eminent domain cannot be used for such an endeavor.

No matter how many buzzwords these grid profiteers use, their ultimate goal is clear:  to enable private companies to take from the public in order to increase their profits.
Congress should create legislative authority for siting major electricity transmission lines that follows the authority it has already granted to siting major gas lines.
In other words, let's let the federal government site and permit electric transmission to create a politically favored electric grid that everyone pays for.  Fly over states and politically disconnected areas will be forced to sacrifice for the needs of the economically advantaged and politically connected.  It's just not true that everyone benefits from every transmission line dreamed up to line corporate profits.  New transmission levelizes prices between generation regions and consumption regions.  While it may lower prices in consumption regions, it raises prices in formerly constrained generation regions, and the folks in the middle get nothing.  Zilch.  Zero.  That problem cannot be solved by federal authority, the only thing federal authority may do is exacerbate it.  Our current system that leaves siting and permitting authority to states is not broken. States do a much better job recognizing local priorities and concerns, and determining benefit to the state.  Any delays come from badly conceived transmission ideas that do not provide benefits to localities, or seek to use the eminent domain power of the state for private transmission projects that do not provide public benefit. 

Here's how to fix a long state permitting process:  Stop trying to use eminent domain to force private infrastructure!  I'm pretty sure Mr. Krapels is well aware that transmission that's sited underwater and underground on land of willing hosts can sail through the transmission permitting process in record time.  Mr. Krapels also probably has customers lined up for the projects he undertakes, and doesn't rely on "build it and they will come" as a business plan.

Stop trying to "fix" what's not broken just to make private utility projects cheaper or faster.  Instead, design better transmission projects with an eye toward making them acceptable to the communities they propose to impact.  The grid operators and regulators we already have do a fine job of vetting transmission proposals and only ordering the building of what's actually needed.  We don't need a bunch of profiteers creating their own private grid through our backyards.

The problem isn't us, it's you.  All the glittering generalities in the world just can't fix that.
1 Comment

Clean Line's Problem is Lack of Customers

4/27/2017

9 Comments

 
I was really trying to ignore it, because it's just so ridiculous.  But, apparently many of you have seen the news video of Clean Line's Michael Skelly looking utterly desperate to spin his lack of success as an "infrastructure problem."

At one point in the video, the host says, "We're talking all around this... what is the problem?"

This is where Skelly should have spoken up and told the truth... the only "problem" with Clean Line's projects is that they have no customers.  There is no market need for a "clean" line.  There's not a thing in the world that Congress or President Trump can do about a product that nobody wants to buy.  We already have a perfectly adequate, government-supervised electric transmission grid that has some of the best reliability in the world.  That's what keeps your lights on, yesterday, today and tomorrow.  Nobody wants to pay extra to use a "clean" line, and that's why Skelly has no customers.  Clean Line has failed.  Nobody can save it.
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Forget about the rest of the blarney.  But it is okay to wonder... has Skelly started dyeing his hair?
9 Comments

Finally, Someone Issues a Report Card to The American Society of Civil Engineers

4/19/2017

0 Comments

 
New from the guy who brought us "The Rise and Fall of Big Transmission" (see also R.I.P Big Transmission here), is an opinion on the annual "Chicken Little" report on infrastructure from the American Society of Civil Engineers -- Electric Infrastructure: Sky Keeps not Falling.

The ASCE report has been pure crap every single year, and I'm not sure why anyone even pays attention to it anymore.  It is concocted by a trade group of engineers whose paychecks depend on the need to build more infrastructure every year.  If anyone got an "A," there would be a lot of engineers in the unemployment line because there would be little need to build more infrastructure.  This report is sort of like if Hershey's issued an annual report on the need for chocolate, and the report was authored by women.  We know that a day without chocolate is like a day without hope, so therefore we need chocolate every.single.day.  And talk about your coincidences, Hershey's sells chocolate (not the best chocolate, but when a chocolate emergency strikes, it's better than a bag of Skittles).  The ASCE report is self-serving dreck designed for doomsayers and vapid public officials without an expert staff to tell them the truth about infrastructure.

Speaking of telling the truth, it probably isn't real good for business if an energy lawyer actually tells the truth.  But yet, Huntoon persists.  His clients must be brave souls.  Gotta admire that!

Huntoon says everything in the ASCE report is wrong.  That's a pretty wide characterization, but sadly it's true.  It starts with this:
For starters, there is this claim: “With more than 640,000 miles of high-voltage transmission lines across the three interconnected electric transmission grids … the lower 48 states’ power grid is at full capacity, with many lines operating well beyond their design.”

The fact is that 0 (zero) transmission lines are being operated beyond their design capacity. The grid has been and continues to be designed and constructed to cover projected peak demand years in advance. And every line is operated within its design limits. The ASCE claim is alarmist and wrong.
(And so is Clean Line's claim that our grid is so congested that no new renewable energy generation can be built without it's "clean" lines -- and for the same reason!)  And don't miss ASCE's claim that we "need" new processes to get "needed" transmission  lines built for renewable energy.

And then Huntoon tears up the ASCE claim that lack of new infrastructure causes blackouts.

The ASCE habitually conflates the transmission system with the distribution system.  Most outages are due to faults on the distribution system, not the transmission system.  When the rare transmission failure happens, though, more customers may be affected.  But transmission is designed to provide contingencies in the event of transmission failure -- loads are switched to other transmission lines and we don't even notice a problem has occurred.  The distribution system lacks this kind of contingency, so if a tree falls on the line serving your neighborhood, you're in the dark.

What we may need to do is make upgrades to the distribution system, which is sorely neglected by investor-owned utilities who would rather put their cash in the transmission system because it pays higher returns on invested capital.  So we've got utilities pursuing expensive transmission lines to nowhere, while distribution lines are rotting on the pole.

The ASCE report card is an industry-influenced, uninformative, biased joke.  Huntoon suggests that we give the ASCE report a D+.  I think that's much too generous.  I give them a U for useless.
0 Comments

Smells Like Broken Dreams and Bitter Lobbyist Tears

3/30/2017

6 Comments

 
I'm sure you know one... a member of the "Good Old Boys' Club."  I'm talking about a well-fed, middle-aged white guy who may actually use the phrase, "Do you know who I am?" on a regular basis.  He doesn't appear to be particularly bright or industrious, and has absolutely no self-awareness or empathy, but he's managed to claw his way into a position where he makes his living by being connected to other old white men and selling his influence to outsiders who want to make a buck.  What happens when that special, privileged world spits out its own?  Who doesn't love a little schadenfreude?

Remember the "Infrastructure List" that has been gushed over by members of the Good Old Boys' Club and their media lackeys for the past three months?  Turns out it's been kicked to the curb, along with the guys who prepared it, and a new crew of infrastructure critters has been let loose in the Washington Swamp.

No wonder Norman Anderson was having a public meltdown last month.  I think maybe he didn't appreciate being ignored by an administration he thought he had eating out of his hand.  Awww... life isn't fair, is it, Norman?  Let's sing together...
*sniff, sniff*  Could someone hand me a tissue?

The Charlotte Observer published an in-depth report covering the "Infrastructure List" and the shady way it was compiled and pushed by a group of guys who are now out of favor with the Trump administration.
When Donald Trump and Mike Pence met this month to discuss a promised $1 trillion infrastructure plan, the Cabinet Room was filled with half a dozen billionaire executives, from Tesla’s Elon Musk to Steve Roth, a New York developer and longtime friend to the president.

One person who wasn’t there? The man who worked for months to line up priority infrastructure projects for the Trump transition team.

Just a few weeks earlier, Dan Slane had been jetting around the country — on his own dime — to meet with governors, contractors, investors, labor union officials and others eager to influence Trump’s infrastructure plan. He developed a 50-project proposal filled with exactly the kind of “shovel-ready” investments the White House wanted – the kind that needed regulatory relief, not federal dollars.

But as Trump’s attention turns to infrastructure after suffering defeat on his first policy priority, the White House will not even acknowledge Slane, except to say he has “no official or unofficial role” in the administration. He says his infrastructure plan, and indeed his very connection to the president, has become the victim of a power struggle for control of this big-ticket infrastructure agenda between Peter Navarro, a Trump loyalist and economic populist who advised his campaign, and Gary Cohn, a former Goldman Sachs president who now runs the National Economic Council.
Who is Dan Slane?  A quick google search shows he's been working with Peter Navarro on a film called "Death by China."  Apparently these guys believe that trade with China is killing our economy.  Slane ought to know... apparently he moved his wood business to China to collect a 17% profit.  I guess that must have scarred his psyche (while fattening his bank account) so now Slane is anti-China.  Apparently the whole infrastructure thing stems from the fact that China has been investing in its infrastructure lately, and we gotta, you know, keep up with China.  But how does Dan Slane connect with Norman Anderson?  The Charlotte Observer reveals:
Anderson’s company had compiled a list of 100 top infrastructure projects with input from senior-level investors, engineers and developers. The list would have been offered to whichever presidential candidate had won in November, Anderson said.

A week after Trump’s unexpected win, Anderson found a white paper online that Navarro and now-Commerce Secretary Wilbur Ross had written for the Trump campaign. It proposed tax credits to fund infrastructure. He emailed Navarro, and offered some suggestions.

“Navarro asked Dan to talk to me the next day,” Anderson said.

Slane, who was working without a staff, asked Anderson to help him screen a list of projects Navarro wanted for the administration. Anderson in turn hired Boston Consulting Group to analyze how many direct and indirect jobs each project would create.
So, how did this list get presented to the media as a Trump administration list, and how did a project get on Slane/Anderson's list in the first place?  The Charlotte Observer explains how the Good Old Boys' Club gladhanding worked...
Playing the liaison

Leaders at the state and local level, and executives at the National Governors Association, thought they had been working with the White House, through Slane.

Paul Aucoin, executive director of the Southern Louisiana Port, said he assumed Slane was a shoo-in for a White House infrastructure job when he met him at Anderson’s offices in Washington in December.

Aucoin made the trip to DC to promote his port and try to secure federal assistance to dredge the mouth of the Mississippi River.

The meeting with Slane had been arranged for Aucoin by the public relations firm of Gary Meltz, a former aide to Democratic Rep. Eliot L. Engel of New York.

Slane introduced himself as a member of the Trump transition, and Aucoin made his pitch.

Slane promised to get the dredging project on the list he and Anderson were compiling for the transition.

“They were very receptive, they got it, they understood what I was saying, they asked all the right questions,” Aucoin said. “It wasn’t like I was talking to a wall. I was finally talking to some one who understood what I was trying to say.”

Later Slane would visit the port and meet with Louisiana Gov. John Bel Edwards. He reassured Edwards and Aucoin that congressional Republicans would pledge money to the project from the Harbor Maintenance Trust Fund. That promise that has yet to be fulfilled.

Aucoin said he’s since hired a lobbying firm in Washington that was working on getting him a meeting with Gribbin.

“It was a blow for us to lose Dan,” Aucoin said.
Let me get this straight... a PR firm with connections made introductions between an entity with a need for a project and some guys who presented themselves as part of Trump's team?

So when Clean Line's Mario Hurtado said:
"When the Trump campaign was looking at infrastructure, we thought it was a good thing to mention. We're just happy to be part of the conversation."
What he really meant was that Clean Line paid a PR firm to make the introductions between Clean Line, Slane, and Anderson, in order to "mention" putting the company's Plains & Eastern Clean Line project on the infrastructure list?  Mario actually did not bump into these guys in the grocery store.  :-(  It actually cost Clean Line money to buy their way onto the Slane/Anderson list.  Guess what, Clean Line?  Looks like you've maybe been taken, and you're really not on Trump's favored list after all.  Even the union's infrastructure wish list (where all three of CLEP's eastward bound projects showed up) was a Slane/Anderson product that Trump now seemingly wants nothing to do with.
Sean McGarvey, president of North America’s Building Trades Unions, said his organization consulted with Slane on his plan. His union delivered to the White House its own list of priority infrastructure projects in February, after meeting with Trump.

“The way Dan framed it was really good because Dan took projects that had all funding but lacked permitting or some who had permitting,” McGarvey said.

“He did a lot of thoughtful work on the initial ready-to-go, out-of-the gate stuff,” he said. “The projects that Dan was talking about really don’t require a new infrastructure bill. Those are ones that exist, that are both private and public, and have the three elements you need: the financing, the engineering, and permitting. And some of them will happen this year.”
Hey, Good Old Boys' Club, are you paying attention?  Pull up a desk and put on your listening ears.  You could learn something...

Clean Line projects don't have financing!
What they have is a plan to raise financing.  Clean Line's plan requires them to contract with future customers to create a revenue stream that Clean Line can use as evidence to secure financing.  Clean Line doesn't have customers.  Clean Line doesn't have a revenue stream that can support financing.  There is nothing a Trump administration (or the Good Old Boys' Club) can do to create captive customers for Clean Line's projects.

Clean Line doesn't have complete engineering!  What they have is a plan to complete engineering once permitting is complete.  Clean Line has no revenue.  None.  It's living high on investor development cash right now.  Engineering is a construction cost that happens after a project is fully permitted and financed.  There is nothing a Trump administration (or the Good Old Boys' Club) can do to finance final engineering for the Clean Line projects.  Federal money would invalidate the project's merchant transmission status with the Federal Energy Regulatory Commission that allows them to negotiate rates with willing customers (see financing, above).

Clean Line doesn't have permitting completed for any of its projects!  The Plains & Eastern project is the subject of a lawsuit in federal court where the U.S. DOE's preemption of state siting authority in Arkansas has been questioned.  The statute DOE used to run over Arkansas  plainly says it does not affect any requirement of state siting laws.  Although this case has yet to be decided by the court, it's not looking good for Clean Line.  Expect that Clean Line shall have to comply with Arkansas state siting laws for its project.  The Rock Island Clean Line project application for a permit has been withdrawn in Iowa.  Its permit in Illinois has been vacated by the Appellate Court.  It has no permits whatsoever right now.  The Grain Belt Express project's permit in Illinois is on appeal, and the project still needs a permit from the Missouri Public Service Commission.  A recent Missouri Court of Appeals decision prohibits the MO PSC from issuing a permit until Clean Line has the assent of each Missouri county it traverses.  GBE does not have all the county assents it needs and is unlikely to obtain them.  All of these permitting issues are STATE permitting issues.  There is nothing a Trump administration (or the Good Old Boys' Club) can do about state laws which govern state permitting, and if the administration tries to preempt state authority to site and permit electric transmission, it's going to have a hell of a fight on its hands, from the states and from the people.

None of the Clean Line projects are getting done this year.  They're not getting done.  Not now, not ever.  Take them off your list, assuming your list is supposed to be a real list, and not just some "pay to play" Good Old Boys' Club list of bridges to nowhere.

Cry me a river of bitter tears, fellas.  Karma's a real bitch.
6 Comments

PJM Doles Out the Punishment

3/17/2017

2 Comments

 
Well, isn't that fun?  PJM is punishing everyone because it's not getting its way.  Well, really Dominion's way, but PJM and its utility members are just different parts of the same animal.

Dominion finds itself mired in controversy over its Surry-Skiffes Creek 500kV transmission project in Virginia's tidewater region.  The project as proposed would make an aerial crossing of the James River quite near the historic Jamestown settlement.  The people say no.  The National Parks Conservation Association says no.  The National Trust for Historic Preservation says no.  The Army Corps of Engineers, who has to approve the project, isn't saying anything at all.  And we have stasis.

So, Dominion called in its trained gorilla, PJM, to terrorize the townsfolk and make them drop their opposition.  As if that kind of behavior ever works in a situation like this.  The people simply said "meh" to PJM's threats of rolling blackouts.

Now PJM has devised a way to punish them with higher electric rates.  And it has upped the ante by punishing everyone else in the PJM region with higher rates as well.  PJM has assigned cost responsibility for keeping generation units on the Virginia Peninsula running after they would have shut down not only to the folks on the Peninsula, but to every other zone in the PJM region.  That's right, electric customers in Illinois, New Jersey, Pennsylvania, Ohio, Kentucky and other PJM states will pay a percentage of the cost of running the units that wanted to retire.  PJM says:
Based on PJM’s assessment of the contribution to the need for, and benefits expected to be derived from, the facilities, the zonal percentage cost allocation for 2017 (January 1, 2017 through April 15, 2017) is...
...followed by a table of allocation percentages.  I'm going to be paying 3.5%.   Meh.

Trade press RTO Insider says
Opposition to Va. Tx Line May Trigger Unintended Consequences

Sometimes the juice isn’t worth the squeeze.

Protesters of a 500-kV transmission line across the James River might soon learn that the hard way. PJM is responding to the delay in the project’s approval by instituting a multilayered strategy likely to hurt ratepayers in Virginia’s middle peninsula disproportionate to any perceived benefits that could come from blocking construction of the line.

At a series of committee meetings last week, PJM staff detailed several other changes for the area that will have consequences protesters likely haven’t imagined.
Like outrageous electric price spikes.
Really, PJM?  Whose interests do you serve again?  You think hitting senior citizens, and other folks who may just barely be scraping by, with surprise outrageous electric bills, and then blaming the opponents of a transmission line, is really going to work for you?

I thought PJM's purpose was:
Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 65 million people.
But it sure seems like PJM's purpose lately is to ram through the projects cooked up by its members without any room for compromise with the people who have to live with them.

Who would be hurt by a change to an underground/underwater project?  Oh, too expensive for the ratepayers, you say?  Well, what about your scheme to gouge ratepayers as punishment for opposing the project?  Won't that be too expensive?  Seems like the ratepayers are going to pay more either way, so why don't you just fall on your sword and cap the damages with a buried option?  At least that would come with a finite number, over the life of the project, instead of giving Grandma a nasty surprise she can't pay for.

And speaking of outrageous costs, PJM, who did you fool with your recent re-start of your Artificial Island project, after removing certain components to lower the overall cost?  I don't think it was ever about the amount... but the fact that the cost was allocated to people who would not benefit.  That hasn't changed.  Good luck with that!

Stop being stubborn, PJM.  You exist to serve the people, not the energy corporations.  It's getting harder and harder to build transmission, and do you know why?  Because the people aren't as easily fooled in this day and age of readily available, unfiltered information.  Badly conceived projects will no longer be tolerated.  So, get with the times, PJM, and recognize that compromise gets the job done.  Quicker.  Faster.  Cheaper.  Easier.  Now is not the time to act like a stubborn mule.

You know, this statement is completely ludicrous.
PJM works closely with stakeholders throughout the development of the RTEP. Stakeholder input is a key part of the PJM planning process. The Skiffes Creek project was reviewed in numerous open meetings of the PJM Transmission Expansion Advisory Committee where public comment was sought prior to approval of the project by the PJM Board. As part of that process, Dominion transmission staff provided PJM its own thorough and comprehensive analysis of system needs as well as potential solutions for PJM consideration. Most importantly however, the Dominion analysis, which itself was based on PJM’s initial determination of reliability criteria violations that needed to be addressed, was then independently validated by PJM and publicly vetted through the PJM stakeholder process prior to PJM recommending Board approval of the Skiffes Creek project.
Public comment was sought?  How did that happen, PJM?  Did you contact community leaders and ask for their comment?  Did you perhaps take out an ad in the local paper soliciting public comment about the project?  Did you go door-to-door and take a public poll?  Of course you didn't.  PJM doesn't interact with the public in any way while considering a transmission project.  It doesn't seek public comments... it simply accepts (and ignores) the comments of any "public" that may somehow happen to accidentally find their way into a PJM TEAC meeting.  The idea that PJM is a publicly accessible stakeholder-driven process is as bogus as it's ever been.  It's time to come out of the shadows, PJM, and interact with the scary public, instead of simply devising ways to punish them for defying you. 
2 Comments

Randy Dowdy Teach Big Lesson

3/16/2017

5 Comments

 
Randy Dowdy used to grow big corn.  But in the aftermath of a natural gas pipeline's crossing of his farm, he seems to nowadays be growing the public's attention to how landowners are routinely disrespected by the builders of new energy projects.

Dowdy's story is shocking.  It's awful.  It's infuriating.  His once extremely productive farm has been destroyed.  The company refuses to pay him for repairs.  Promises made were not promises kept.

Sadly, Randy Dowdy's story isn't unique.  Its a common story told over and over by landowners who are unfortunate enough to find themselves in the middle of a linear energy infrastructure project, whether pipeline or electric transmission line.

Lesson #1

Don't believe verbal promises from the company.
When Sabal Trail approached him, Dowdy agreed to a negotiated fee for the right-of-way and estimated crop loss because he knew if he balked, the government would help the company take it anyway. He agreed in good faith, as well. Sabal Trail promised that Dowdy’s land would be returned to its original state by early January, in time for the new planting season.

And this is where the dispute begins.

“I was assured that Sabal would adhere to Georgia Soil and Water provisions,” says Dowdy, “that they would adhere to guidelines for segregated top soil and sub soil…rebuild my terracing to insure erosion wouldn’t occur…and put everything back in pre-construction condition. They said they would do…in their words…everything it takes.”
Lesson #2

Companies will hide behind construction management plans approved by regulators.
Andrea Grover, Director of Stakeholder Communications for Sabal Trail, says the company “followed specific protocols in place for construction which include storm water, erosion and sediment control plans which all require best management practices or “BMPs.”

“Our representatives have worked with individual landowners over the course of the past 3 ½ years to address concerns as related to the project and its impact to agriculture,” Grover explains. “The Federal Energy Regulatory Commission (“FERC”) is the lead agency which approves pipeline projects, and Sabal Trail’s work is limited to only the FERC approved areas and conditions for construction. Project inspection personnel and our contractors all have the appropriate level of certifications for storm water controls inspection in Georgia.”
Lesson #3

Landowner complaints are ignored.
While Sabal Trail management promised that Dowdy’s farm would be back in business by the first week in January, and ensured that the project right-of-way would be “restored to its previous condition and contours,” that wasn’t the case. Repairs continued into February—and, worse, were still in progress when a major late January storm hit the state.

“I had already reached out to Sabal Trail management at least five times in December to say I was seeing erosion issues,” recalls Dowdy. “They promised to fix it immediately, but they never did, so when the storm came, we were completely unprotected.”
Lesson #4

Your only remedy for a dispute over damage is through civil court, at your own expense.
Dowdy thought he had made some headway with Sabal Trail when the company, in an attempt to make peace with an unhappy landowner, offered to pay Dowdy to make additional repairs to his land.

“They asked me to put together an estimate for attempting to repair the land, including an acceptable value I placed on my wetlands, and additional future yield loss,” says Dowdy. “We made a verbal agreement and I began repairs as instructed. Sabal knew the costs and agreed to pay for the estimated costs of repair.”

“When it came time for them to pay though, they introduced a condition—in order to get my reimbursement, I would have to sign a document releasing Sabal from future long-term yield loss, wetland violations and compensation. Here I was repairing what they messed up at my own expense and then they want more.”

Dowdy says his lawyer advised him not to sign and, thus far, he has not signed nor has he received a penny of the promised reimbursement from Sabal Trail.

Next Step…Litigation?
Lesson #5

Despite having access to approved construction management plans, personnel actually completing the work have little knowledge of the plans and are apt to take shortcuts or plain ol' ignore the plans in order to get the job done easier and faster.  The people doing the actual construction work don't care about your property the way you do.
Dowdy’s laundry list of what wasn’t completed correctly by Sabal Trail is long.

“Sediment barriers were placed wrong, no hay was spread, there were no temporary terraces or berms…water was moving off my land at a 10% grade and sediment was going right into the surrounding wetlands and waterways. If Sabal had been in compliance with BMPs, I wouldn’t have been replacing 15,000 cubic yards of topsoil as I am having to do after the storm.”

Grover says Sabal Trail did return to Dowdy’s farm, and others impacted by pipeline construction, after the late January storm event, to “inspect the construction areas to ensure soil erosion devices installed according to the BMPs are working properly or repaired if necessary.”

But by then, says Dewey Lee, UGA Professor and Extension Agronomist, even though Sabal Trail installed additional BMPs after the storm damage was discovered, it was too late.

Lee who has worked with Dowdy on conditioning his farmland for a decade, says, “In the restoration that Sabal did, it appears they did not follow regulatory protocols perfectly. It appears that the crew handling the reconstruction did not have a full understanding of what their responsibilities were. This ultimately caused erosion down Randy’s waterways and across his field.”

Like Lee, irrigation specialist, Rance Harrod, knows well Dowdy’s attention to detail when it comes to his land. Dowdy and Lee’s suspicions that co-mingling of the top and sub soils in the fields was confirmed just last week after an irrigation supply line to the pivot began leaking. It was Harrod, along with Dowdy and a Sabal Trail employee, who worked on the fix.

Dowdy says as soon as Harrod began digging, it was apparent that the Sabal Trail repair crew had paid little attention to BMPs when it came to replacing the soil.

“Sabal has created tremendous soil loss and erosion resulting in offsite movement into the wetlands, no question about that. Randy’s damages are almost incalculable,” Lee adds.
Lesson #6

The regulators who approve construction management plans don't enforce them.  They expect that the company will police itself.  Company inspectors work for the company, not the landowners.  The fox cannot guard the hen house.
“I shared pictures of the problems I was seeing with the Georgia Environmental Protection Department to show them things weren’t being done to regulations, hoping that they would take it up with Sabal,” says Dowdy. “But they said they needed to see it at the time it happened…that a later complaint wasn’t enough.”

Dowdy recalls he asked the agent “well where were you when it needed to be inspected?” He says the agent told him they didn’t have enough manpower to be everywhere along a 500-mile pipeline at all times.

“The only people inspecting what Sabal was doing to my land was Sabal,” says Dowdy. “The way I see it, it was like the proverbial fox guarding the hen house.”
Energy companies and regulators talk big about construction plans that protect landowners.  Reality is often far different.

Construction management, environmental protection, and agricultural impact mitigation plans are just that... plans.  They offer no real protection for landowners.  They're just pieces of paper.  Don't be fooled.
5 Comments

Where's The Customers, Clean Line?

3/8/2017

5 Comments

 
The entire Arkansas Congressional delegation launched a new, two-pronged defense against  greedy Houston entrepreneur Clean Line Energy's federal plans for Arkansas this week.  The delegation announced that it was re-introducing its APPROVAL legislation, and sent a letter to new Energy Secretary Rick Perry asking that he take another look at the agency's participation in the Plains & Eastern Clean Line project under Section 1222 of the Energy Policy Act.
Like many policies that were proposed by the Obama Administration, the DOE/Clean Line agreement is currently tied up in the courts.  DOE is involved in a lawsuit, forcing the agency to address the lingering doubts regarding the legal justification for the department’s decision.

If these concerns are ignored and the project is allowed to move forward, not only are Arkansans facing the prospect of losing their property due to a decision by the federal government, but your department risks codifying into law the practice of federal eminent domain seizures.  This dangerous precedent is antithetical to your distinguished record as a champion for states’ rights in the face of federal overreach.

Throughout your career you have been a champion of states’ rights.  This Administration has promised to give a voice back to its citizens.  This is a good way to show that commitment.

We will continue working to halt the project, not only because it violates property rights of Arkansans, but also because it violates the rights of all Americans to have their voices heard at the state and local level.  We hope you can appreciate our concerns and work with us to fight against this lingering overreach of the Obama Administration.
So much for Clean Line's desperate pretension that the new administration won't change its prospects in Washington.  Clean Line has only been kidding itself.  Looks like the real poo has hit the fan.

And what did Clean Line have to say for itself?  Prepare to be amused...
In a statement provided Monday to the media, Clean Line officials said the APPROVAL Act “creates more red tape and kills jobs by attempting to pull back approvals the project has already received.” The Clean Line statement also included a note of support from a large national union.

Clean Line Founder and President Michael Skelly said much consideration was given to the project before it was approved.

“We are very confident in the nearly decade long process undertaken by the U.S. Department of Energy in order to decide to participate in the project under Section 1222 of the 2005 Energy Policy Act. This law was passed with bipartisan support, including then-Congressman John Boozman’s, and signed by President George W. Bush,” Skelly said in the statement. “The Plains & Eastern Clean Line is a pro-jobs, pro-consumer, pro-environment public energy infrastructure project that will help to create a secure energy future for the country, and we are ready to get to work.”

Red tape?  As if this project's efforts to bypass the Arkansas regulatory process and misuse an untested federal statute to force its way through the state wasn't already red tape enough.  But the real problem here seems to be the possibility that the DOE could "pull back approvals the project has already received."  That could happen.  In fact, the chances of it happening are escalating quite alarmingly.  But that's what Clean Line signed up for when it decided to attempt a merchant transmission line across multiple states.  Clean Line assumed all risk for the project.
Plains and Eastern state that they will assume all market risk associated with the development and construction of the Project and that there will be no captive customers.
Risk includes the possibility that laws and politics can and will change and "approvals" may be "pulled back."  That's the kind of risk that Clean Line signed up for.  But when real risk actually develops, Clean Line whines that it shouldn't have to face any risk.  Sorry, Clean Line, risk is your middle name.  Pull up your big boy pants and deal with it.  Risk just got real.

You've been trying to convince everyone that your project is "pro-jobs, pro-consumer, pro-environment" for months now, but it's just not working. 

How does one kill a job that doesn't exist?
“At the same time that our country is focused on creating opportunities for American workers, Arkansas Congressmen introduced a bill that will kill thousands of American jobs and, specifically, hundreds of Arkansas jobs,” said Lonnie Stephenson, International President of the International Brotherhood of Electrical Workers (IBEW). “Whether the infrastructure project be a pipeline or an electric transmission line, the IBEW strongly disapproves of politics getting in the way of American job creation.”
Hahahaha.  The unions thrive on politics!  Politics is the only reason Clean Line is using the union as its spokesmodel.  Building things we don't need in order to create make-work jobs for very specialized labor isn't a solution to America's economic woes.  The right to a temporary job for a union worker shouldn't have to be weighed against the right of an individual to own and enjoy real property.  You'd think unions would have other, more important, things to worry about these days instead of getting involved in political posturing in support of building a bridge to nowhere.  Clean Line has never even gotten close to building anything, anywhere.  The jobs don't exist.

The claim that Clean Line is "pro-consumer" is empty.  No consumers have supported the Clean Line projects.  Clean Line claims that its projects will result in lower electric rates are pure fantasy.  Clean Line doesn't exist, and neither do the "cheap, clean wind energy" generators it proposes will develop.

The pro-environment claim is also empty.  How does one preserve the environment by unsustainably plowing through three states with a gigantic, scorched earth obstruction?  And let's be real here... Clean Line has been marketing its project as an "arbitrage opportunity" to ship fossil fuel electricity between regions to take advantage of market price differentials.  There's no such thing as a "clean" line.  All electrons are the same color and transmission cannot discriminate between generation sources.  The only ones fooled by Clean Line's environmental claims are the sadly blind environmental groups, who refuse to peel back the propaganda and actually examine the project.

And there's nothing "secure" about an unneeded electric transmission line hundreds of miles long.  Clean Line does nothing to ensure grid reliability... if it did it would have been ordered by a regional transmission authority and the risk of building it would have passed to electric consumers.  But it didn't.  It's simply an extraneous bridge to nowhere designed for profit.

Now let's examine the REAL issue hiding behind Clean Line's carefully crafted smoke and mirrors...

The Plains and Eastern Clean Line has no customers!  That's right, nobody has signed a contract to use (and pay for) the transmission line.  Customers must voluntarily commit to purchase transmission capacity from Clean Line in order to create a future revenue stream.  Without a revenue stream, Clean Line cannot finance its project.  Without billions of dollars of financing, Clean Line cannot build its ginormous project.
Picture
It's all about the customers.

When is the media going to start asking the important questions, instead of simply fawning over the propaganda Clean Line feeds them?  Take Arkansas Business reporter Kyle Massey, for instance.  (Please?  Nyuck, nyuck, nyuck.)  Massey "reported" that President Trump loves infrastructure and eminent domain and therefore the Arkansas delegation "have opened an ideological battle that puts the all-Republican Arkansas congressional delegation in Washington at odds with the new infrastructure-friendly mindset of President Donald J. Trump."  Really, Kyle?  Is that what good Republican Michael Skelly told you?  That whole infrastructure thing is concocted wishful thinking designed to misdirect "reporters" like Kyle from the real issue... Where's the customers, Clean Line?  Because politics and "approvals" aside Clean Line cannot be built without customers.  Kyle also gushes that Clean Line's "construction effort" is scheduled to begin in the second half of this year.  That's 3 months away... and Clean Line has no customers... and no financing, and cannot meet the conditions DOE placed on their "approval" last year.  Without satisfying the DOE's conditions, DOE will not "participate" in the project in order to unlawfully condemn property for the part of the project it proposes to "own."  I doubt Clean Line will be building anything this year... or ever!

So what really happened this week?  Clean Line's risk just got real.  In addition to having no customers, Clean Line now risks that its "approval" by former Energy Secretary Ernest Moniz will "be pulled" by new Energy Secretary Rick Perry.  It also is at risk that the law will change to require Section 1222 projects to receive the approval of a state's governor and PSC chairman, and for a federal project to be sited on federal property as much as possible.  How is Clean Line supposed to find willing customers with this much additional risk on its plate?  Doubtful.

Where's the customers, Clean Line?
5 Comments
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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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