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Clean Line's Fake News

2/3/2017

3 Comments

 
All press is good press, right, Clean Line?

Not necessarily.  After years of using Democrats and environmental organizations as mouthpieces for its "clean energy" scheme to build billions of dollars worth of highly profitable new electric transmission, Clean Line suddenly wants everyone to believe that it has an "in" with the new Republican Trump administration.  As if media spin and fake news could boost investor confidence in a company with no conceivable revenue stream.

Last week it was the fake "Trump administration" infrastructure list that turned out to be nothing more than a lobbyist constructed wish list.  The Trump team disavowed the list as coming from them.

This week, E&E's environmental trade press wants us to believe that Clean Line's Jimmy Glotfelty may be appointed "Chief of Staff" in Perry's Department of Energy.

Hahahaaaaa!

Entertaining, however nothing but more fake news designed to pretend that Clean Line's projects are viable because they will be boosted by the new administration.

So, why can't Jimmy walk into DOE's revolving door and help Clean Line from the inside?

Because he's personally invested in the company.  This would be a huge ethics violation for an individual to "regulate" his own investment.

From Clean Line's testimony at the Missouri PSC:
Clean Line’s owners are GridAmerica Holdings Inc., a subsidiary of National Grid USA (“National Grid”); Clean Line Investor Corp., a subsidiary of ZAM Ventures, L.P. (“ZAM Ventures”); Michael Zilkha; and Clean Line Investment LLC.

Clean Line Investment LLC is a vehicle for service providers and employees to invest in Clean Line, and is a small, minority shareholder in Clean Line.

Which employees have invested in Clean Line Investment LLC?
Michael Skelly
Michael Zikha
Jayshree Desal    
James Glotfelty    
Mario Hurtado    
David Berry

If the mysterious "source close to the DOE" who placed Jimmy's name on the short list for a DOE position thought nobody would ever notice that Jimmy has a huge conflict of interest, the cat's now out of the bag.

What a ridiculous bunch of fake news!  Clean Line's attempts to generate supportive fake news has finally jumped the shark.  This simply cannot happen.

I wonder how much it has cost to place Clean Line in all this fake news?  As the folks at Block Clean Line ruminated:
While all these things seem kind of academic, it's pretty clear from Mario Hurtado's interview with NewsOK that the truthiness of this list isn't going to stop Clean Line from spinning it in a way they can use to preen (beg?) for financing and to pressure landowners.

"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."

Like, when did you just happen to mention it? Did you run into them in the grocery store? How much did that conversation cost?

And how much mileage does this fake news really have?

Will it change the Participation Agreement between Clean Line and the U.S. DOE that requires the company to secure customers and financing before the DOE steps in to negotiate rights of way for the project? 

No.

Will it cause utilities to sign contracts for transmission capacity from a bunch of wind generators that haven't even been built yet? 

No.

Transmission without generation is a cart before horse proposition fraught with risk.  Would you buy shipping for a product from a certain location, before you even decided where to buy your product?  Of course not.  And that's where Clean Line's business plan hit the molasses swamp.

Will the Trump administration be fooled by all this fake news to believe that it supports a transmission project that its never taken official notice of before?  Will no one speak out about all this fake advocacy?

Personally, I've had enough fake news.  As if the folks so upset by last year's election can overcome it by projectile vomiting a huge vat of half true and made up crap.  The greatest danger of embellishing is that folks will simply tune you out and stop listening.
Here's a little reality.

No matter how Clean Line spins news to try to make you believe Trump champions their project, there is nothing the administration can do to make the project happen.  It's a market-based project, and the market just isn't there.  Who is Clean Line trying to fool with this fake news?  Maybe landowners, who are resisting their efforts to purchase rights of way for the project.  Maybe investors, who may be getting nervous because Clean Line has no customers.  And maybe they just like to hear the sound of their own name, even though the claims are empty.

Is the Trump administration really having secret meetings with Clean Line Energy Partners?  Go ahead, ask them!
Right now, I'm a villager.  I don't believe it.
3 Comments

Clean Line Business Plan May Be Beyond Reporter's Grasp

1/13/2017

2 Comments

 
The Arkansas Business reporter who attempted to speak for landowners last year is back to assure everyone that the Plains & Eastern Clean Line is sure to be a favorite of the new Trump administration.  Maybe it was hard to breathe in there and he got a little confused?  Or maybe he just doesn't have enough information because he's been talking to the wrong people?

Kyle Massey insists:
... a GOP penchant for infrastructure projects and commerce-building is expected to favor endeavors like the Plains & Eastern Clean Line, a $2 billion plan for transmitting wind power across 12 Arkansas counties from Oklahoma to near Memphis.
Let's parse that statement.  Massey says Plains & Eastern is expected to be "favored."  Favored?  How is that exactly?  What might a GOP administration actually do to "favor" the project?  Does this mean that the administration will somehow step outside the law to "permit" this project?  Does it mean that a GOP administration will suddenly find a big chunk of taxpayer cash with which to build the project?  Does this mean that a GOP administration will finance the $2B project with taxpayer funds?

None of that will happen.  Because it can't happen.  The U.S. Department of Energy has already signed a Participation Agreement, in which it agrees to "participate" in the project only under certain conditions.

1.  No taxpayer or government money or loans will be used for the project.
2. The project must be fully financed before the government "participates."
3.  The  project must have confirmed customers for its transmission capacity before the government "participates" in eminent domain activities to secure needed right of way.

There's absolutely no way for any administration to further "favor" the Plains & Eastern project to assure that it gets built.

Plains & Eastern is a "merchant" transmission project.  That means that the company takes on all the market risk for the project.  If there is no market for the project, it cannot be financed and built because it has no revenue stream to pay for construction.  Only potential customers can volunteer to buy capacity and create a revenue stream.  It has no captive ratepayers forced to shoulder its costs and guarantee repayment of financing.

And Plains & Eastern has no customers.  No utilities have volunteered to become customers.  No "fortune 500 companies" have volunteered to become customers.  Fortune 500 companies do not buy power and transmission directly, but are served by their local utility franchise.  So no matter how much they may be clambering for renewable energy, the companies do not decide where it is procured, or how it is transmitted.  The utility makes that choice.  The utility has a responsibility to provide its captive ratepayers with the cheapest resource available.  So, sure, big companies do carelessly throw their names onto ineffectual letters that pretty much say nothing.  But they do so at their own risk... the risk that their customers may find their penchant for eminent domain to accomplish their corporate greenwashing goals repugnant and stop shopping at their stores or buying their products.  While it is generally accepted that "green is good," and that greenwashed companies are favored by the public, that changes when the greenwashing encourages the eminent domain taking of customer private property.  Do I want my shampoo made with green energy?  Do I want my shampoo made with green energy that hinders the productivity and profitability of a chicken farmer in Arkansas?  No, the "green" doesn't spread that far.  Maybe Unilever is going to produce, and Walmart is going to sell, new Eminent Domain Guilt Shampoo?  Lather, ruin someone's dream, rinse.  Repeat the misery.

Massey's dream is buoyed along by academia.
Academic voices say the trend toward renewables may be too entrenched to be crippled by Washington. Trump “can eliminate subsidies for solar power as well as electric cars, and he may not be very supportive of renewable energy, but ultimately technology and market forces will be the determining forces,” said Rajesh Sharma, an Arkansas State University assistant professor and expert in renewable energy technology. “Clean technology is advancing every year and costs are going down.”
Actually, the subsidies for industrial wind are already on the chopping block and were reduced 20% on January 1, with additional reductions to come every year until phased out completely by 2021.  Wind is going to get more expensive when tax credits evaporate,  not cheaper.  Economics aren't going to help Plains & Eastern.  The project failed to attract customers when the tax credits were highest, and a GOP administration is likely to further dampen enthusiasm for expensive power that utilities aren't required by law to buy.  Even our pal Mikey Skelly acknowledges that.
Skelly sees opposition to the Clean Power Plan as “probably a net negative” to his ambitious project...
Massey's prediction, masquerading as "news," holds no greater weight than the prognostication of someone else.

And with the help of Wayne and Garth we will now enter our own dream sequence...
President Trump:  "What's this Plains & Eastern Clean Line?"
Secretary of Energy Perry:  "It's a 700-mile electric transmission line that will encourage the building of thousands of new wind turbines in red states."
President Trump:  "Does it have any customers?"
Secretary of Energy Perry:  "No.  Even the previous administration wasn't capable of 'favoring' it enough to attract customers."
President Trump:  "Do the Republicans want it to be built?"
Secretary of Energy Perry:  "No.  As a matter of fact, the entire Republican delegation from the State of Arkansas is vehemently opposed to it because it is just so much federal overreach."
President Trump:  "$@$& that!  Plains & Eastern Clean Line, you're fired!"

We've all got dreams.  Some are more realistic than others.
2 Comments

Clean Line Deathwatch Victim #2:   Southwire

1/8/2017

7 Comments

 
Clean Line "preferred vendor" Southwire joined compatriot General Cable in the cemetery of good intentions this week.
Picture
Southwire announced that it will be closing its Flora, Illinois facility in the first quarter of this year.  That's a lot of permanent jobs that will disappear from southern Illinois.  And another of Clean Line's "strategic alliances" bites the dust.

Rock Island Clean Line's "strategic alliance" with Southwire:
Clean Line recently announced an agreement with Southwire, designating Southwire as the preferred supplier of the overhead transmission wire for the Rock Island Clean Line. The agreement anticipates that the wire will be produced in Southwire’s facility in Flora, Illinois, where the company employs approximately 130 people. Clean Line and Southwire announced the agreement on March 6, 2012, at the American Wind Energy Association’s Regional Wind Energy Summit- Midwest.
Grain Belt Express Clean Line's "strategic alliance" with Southwire:
A leader in technology and innovation, Southwire Company, LLC is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture underground and overhead Utility products, Renewable Energy products, building wire and cable, metal-clad (MC) cable, portable and electronic cord products. Southwire also provides OEM wire products, engineered products, continuous casting technology, and products made by Technology Research, LLC and Watteredge, LLC, both subsidiaries of Southwire Company.

Southwire’s Flora, Illinois plant has more than 40 years of experience in the design and manufacturing of overhead transmission conductor. Today, the plant leverages that expertise to support large-scale transmission projects like Grain Belt Express. The Grain Belt Express project could require as much as $35 million in materials from Southwire, depending on commodity prices and other variables.
So what happens to Southwire's extra-special MOU with Clean Line to purchase transmission wire for two of its proposed projects valued at more than $100M?  Will Southwire manufacture the wire for Clean Line in another state or even another country?  How exactly does this help the state of Illinois?  And how much did the Illinois Commerce Commission depend on an increase in Illinois jobs when it approved the Rock Island and Grain Belt projects?
SPRINGFIELD (Nov. 12, 2015) – The Illinois Commerce Commission (ICC) today approved an Order granting Clean Line Energy a Certificate of Public Convenience and Necessity to construct and operate the Illinois portion of the 780-mile direct current Grain Belt Express Clean Line.

The project will bring approximately $700 million of private investment to the state of Illinois, create about 1,500 jobs and support Illinois manufacturing.

Clean Line is also committed to supporting local businesses and has designated Southwire Company a preferred supplier for wire for the transmission line. Southwire will manufacture the wire at its plant in Flora, Illinois.

Whoopsie!  And what about all the economic promises to Illinois touted by the Chamber of Commerce?
“The Illinois Chamber of Commerce applauds Clean Line Energy and Southwire Company for coming together to support manufacturing jobs in Illinois,” said Todd Maisch, President and CEO of the Illinois Chamber of Commerce. “Through this agreement, the Grain Belt Express Clean Line will create vital work orders for a local company. Clean Line’s commitment to hiring locally whenever possible will ensure that the Grain Belt Express will be an economic boon to the state.”
Gone with the wind.

So, let's review.  One of three Plains & Eastern Clean Line "strategic alliances" is kaput.  One of three Rock Island Clean Line "strategic alliances" is kaput.  One out of five "strategic alliances" for the Grain Belt Express Clean Line is kaput.

A MOU with a company that can't get its projects approved, financed and built can't prevent economic disaster.

Who's next?
7 Comments

Clean Line Sponsors Hen House for Utility Chickens

1/7/2017

2 Comments

 
Here chickie, chickie, chick...

Clean Line Energy Partners and the Southern Alliance for Clean Energy are "sponsoring" a "clean power summit" for southeastern states.  What a great way to herd all the southern utility chickens into the HVDC merchant transmission line hen house!

Still completely desperate for customers I see, Clean Line.  As if listening to Mario Harturdo for 45 minutes is going to result in enough transmission capacity contracts to save your project?  That's pretty pathetic.  And also amusing.
Picture
Nobody wants to contract for transmission capacity on an unbuilt transmission line that doesn't connect with any existing generators.  No generators, no transmission line, no customers!

While the vast majority of the presentations at the "summit" are about distributed generation, solar and building wind generators in the southeast, never fear, Clean Line and its environmental puppet will be making presentations touting the wonderfulness of long-distance HVDC transmission from the Midwest.  Sounds like a good time to step outside and get a cup of coffee, return some phone calls.

Here's what's timely and interesting for southeastern utilities:
  • South Carolina’s Distributed Energy Resource Act
  • Southeast Solar, Renewable Energy Policy and Rate Design Update
  • Entergy New Orleans’ Self-Build Aggregated Rooftop Solar Project
  • Management of Purchase Agreements for Both Power and RECs
  • State Utility Commissioners’ Perspectives on Clean Power in the Southeast (renewable resources policies and development in the region)
  • Distributed Solar at Florida Power & Light
  • Case Study: Designing a Community Solar + Storage Project to Meet Customer Needs
  • Community Solar: Where Are We Now?
  • Ratemaking Challenges and Solutions with Renewable Energy
  • New Hydropower at Existing Dams, Realizing the Full Potential of Existing Infrastructure
  • Net Energy Metering Across Entergy’s Jurisdictions
  • Renewable Energy Programs in the Tennessee Valley
All these topics focus on southeastern renewable resources... making the most of what's available locally.  And then there's Clean Line, and SACE, sticking out like a couple of sore thumbs.
  • Utilizing HVDC Transmission to Enhance Renewable Energy Delivery in the Southeast
    High-voltage direct current (HVDC) transmission is the most efficient technology to move large amounts of power over long distances. Utilizing HVDC, the Plains & Eastern Clean Line will provide southeastern states with access to some of the best wind energy resources in the country. Low-cost wind power delivered by this project is an essential measure to help southeastern states diversify their energy mix. This presentation will outline the measures by which Clean Line is conveying low-cost renewable energy from windy areas in the Plains States to areas with a demand for clean energy. It will also examine how Clean Line has navigated state and federal permitting processes to advance the project to construction.
Say what?  Construction?  Clean Line hasn't put one shovel anywhere near the ground yet.  And why is that?  Because Clean Line has no customers!  No customers, no eminent domain help from the U.S. DOE, and no project financing.  And, just so you know, Clean Line isn't an "essential measure" for any purpose.  Transmission lines that are "essential" would be supported by regional planning authorities.  Clean Line is not supported by any planning authority.  Clean Line is pure "build it and they will come" speculation.  Except Clean Line wants the chickens to come before they build it, and that's just not happening.

So, if the chickens aren't convinced by Mario Harturdo's presentation, there's still an opportunity to be guided to buy transmission capacity on an unbuilt transmission line to nowhere by the Southern Alliance for Clean Energy.
  • Key Considerations for Southern Wind Power    Wind power opportunities for customers in the south are expanding. North Carolina has installed its first utility-scale wind farm, highlighting the improvement of new turbine technology for in-region wind power. Utilities are beginning to focus on winter peak demand requirements, during times when power resources would provide substantial capacity. The changes in the federal production tax credit (PTC) for wind power effectively gives a four-year window, after signing a power purchase agreement, to receive power. Major proposed high voltage direct current (HVDC) transmission projects would connect exceptionally high value, low cost wind power resources to the southeast. How do these key considerations affect plans for renewable energy purchases in the next five years? What are the primary benefits, and challenges, to incorporating more wind power into the southeastern electricity mix? This segment will focus on recent changes and considerations for southern wind power and how to evaluate what opportunities exist.
Oh for the love of Woodsy Owl... the last thing a bunch of utility executives need is to be "taught" how to evaluate wind power purchases by an environmentalist.  SACE knows so much about utility renewable purchase agreements that it recently sponsored a petition asking the TVA to buy power from Clean Line Energy.  (Hint:  Clean Line does not sell power.  It is a wanna be transmission company.)  I hope Simon is planning to play loud music during his presentation to cover up all the laughter from the audience.

And for attending this glorified sales pitch, conference organizer EUCI wants you to pay $1195 in conference fees, per person, plus the cost of travel, room & board while you're whooping it up for 2 days in beautiful, warm Charleston, SC.

Sorta makes you wonder... if these "summits" have "sponsors" that are permitted to advertise their products with presentations during the "summit," why is there an additional fee to attend?  Is EUCI splitting the loot with its "sponsors?"

Heeeerrrre chickie, chick, chick...
2 Comments

Why Grain Belt Express is a Bad Deal for Missouri

11/29/2016

6 Comments

 
Public hearings on Grain Belt Express' most recent application (its third) to the Missouri Public Service Commission are set to begin next week.  Another huge public turnout to oppose the plan is expected. 

None of Clean Line's smoke and mirrors about project "benefits" has any basis in fact or logic.

Clean Line's proposed "income" for landowners is a huge fabrication.  Any payments to landowners are a lame attempt at compensation for property taken from landowners through the courts.  In exchange for payments, landowners would be trading rights-of-way across their property.  Eminent domain law requires the taking entity to compensate landowners for the market value of property taken from them.  It is not additional "income."  Income would allow a landowner to gain something valuable while losing nothing.  The truth of the matter is that Grain Belt Express is proposing to make landowners whole for property taken from them.  It's a wash, not a gain.  It's no different than Walmart showing up at your house and cleaning out your pantry and freezer and then giving you "market value" for the goods it has confiscated.  Meanwhile, Walmart has your food and can sell it to others for a profit.  There are no benefits to landowners from construction of Grain Belt Express.

Clean Line's claims of increased tax revenue for counties crossed is another disingenuous glittering generality.  In essence, it is a proposal that economic development opportunity trumps your right to own and enjoy property.  Everyone's house would generate more tax revenue if it was a Walmart.  Economic development alone is not reason enough to trample on private property rights.  This is even more true when looked at through the public utility lens that Clean Line hides behind.  Public utilities have enjoyed eminent domain authority when a project is necessary to serve the public.  It's a high burden that a utility must carry to demonstrate that its project is necessary to serve the public.  Simply stating that if property is taken and a project built that a public need will develop, is not enough to carry this burden to take property in the first place.  Especially when the "utility" is Clean Line, who has no firm customers for its transmission line.  It's all based on future speculation, and that's not good enough.

Clean Line's claims of increased tax revenue also fail to calculate any detriments Grain Belt Express will bring to affected counties.  Properties crossed by electric transmission lines lose value.  This lowers the assessed value of affected properties and decreases property tax revenue to the county.  In addition, the burden of hosting the transmission line will cost the county in increased public safety expenses, both during the invasive construction of the project and for years afterwards when the counties must purchase equipment and supplies to prepare for any transmission line disaster that may happen in the future.  For example, substation fires require different types of equipment and special chemicals to fight.  Counties could spend their entire "windfalls" supporting Clean Line's infrastructure in their locality.

Clean Line's claims that its Grain Belt Express project will save Missourians $10M a year in energy costs is not based on fact.  Although Clean Line witnesses make this claim in testimony to the PSC, there is nothing to back it up.  No analysis, no numbers.  Based on documents made public months ago, the $10M claim was concocted by Clean Line when it attempted to sell its capacity to Missouri municipalities.
Preliminary calculations, assuming existing production tax credits for wind project participation in the project, could reduce costs by as much as $10M/year or $10 per megawatt hour compared to delivery of other wind projects from SPP to MISO.
Preliminary calculations?  Clean Line's calculations, which have yet to be revealed to the public.  "Assuming existing production tax credits" assumes too much.  At the end of this year, the production tax credit will begin phase out and the subsidy for wind energy will be cut 20%.  The following year it will be cut 40%.  The next year it will be cut 60%, eventually disappearing altogether within 5 years.  Couple this with our friend Bob from the Hannibal BPW's recent statements that he has yet to contract for any wind energy to serve the City of Hannibal.  That's because the generators Clean Line says will develop to use its project haven't been constructed yet.  The only thing Missouri municipal utilities have tentatively contracted for with Clean Line is transmission capacity, not energy.  Energy must be purchased separately, and come from the specific geographic area close to Clean Line's proposed converter station in southwest Kansas.  It's not about purchasing the cheapest wind energy available in today's market, it's about speculation with unbuilt generators to supply energy via an unbuilt transmission line.  Too many variables to accurately calculate any cost savings to Missouri, since Clean Line cannot and does not sell any energy proposed to be transmitted to Missouri via its project.  How was this $10M "savings" calculated when there are no energy prices to work with?  Sort of looks like Clean Line simply made it up out of hypothetical numbers presented in a light most favorable to Clean Line.  But, hey, at least the Missouri municipalities have the option to back out of their "contract" with Clean Line at any time in the future and purchase nothing.  If cities sit around waiting for Clean Line to ship them energy from generators that don't exist, at prices that have no basis in reality, then the cities may get stuck paying much higher prices to procure energy down the road if nothing develops and they're left without enough resources to serve customers.  Coulda, woulda, shoulda... by law, utilities are required to have adequate resources under contract, not base their future service on hypotheticals.

And simply parading a collection of politicians and business interests who stand to personally profit from the construction of the project isn't support based on fact and logic.  It's based on money, pure and simple.

True grassroots opinion based on fact and logic cannot be bought.  True grassroots opposition will drown out expensive, manufactured "support" and will carry the day at the upcoming public hearings.  Won't you lend your voice?

The public hearing schedule:
 
Dec. 7, 2016: Monroe City
Knights of Columbus Hall, 424 South Locust
The local public hearing will begin at 12:00 p.m.*

Dec. 7, 2016: Hannibal
Theater Auditorium, Hannibal-LaGrange University, 2800 Palmyra Road
The local public hearing will begin at 6:00 p.m

Dec. 8, 2016: Marceline
Walsworth Community Center, 124 East Ritchie
The local public hearing will begin at 12:00 p.m.*

Dec. 8, 2016: Moberly
Moberly Municipal Auditorium, 201 West Rollins
The local public hearing will begin at 6:00 p.m.

Dec. 13, 2016: Cameron
Cameron Community Center, 915 Ashland Avenue
The local public hearing will begin at 12:00 p.m.*

Dec. 13, 2016: Faucett
Mid-Buchanan High School, Multipurpose Room, 3221 SE Route H
The local public hearing will begin at 6:00 p.m.

Dec. 14, 2016: Polo
Community Center at Stagecoach Park, 1010 Main Street
The local public hearing will begin at 12:00 p.m.*

Dec. 14, 2016: Carrollton
Rupe Community Center, 710 Harvest Hills Drive
The local public hearing will begin at 6:00 p.m.
 
*In order to be able to move equipment to the next local public hearing that same day, 12:00 p.m. local public hearings will end no later than 4:00 p.m.
 
For more very important info. please visit Block GBE-MO.
6 Comments

Ut-oh, GE!

11/2/2016

0 Comments

 
Well, whoop-de-diddly-doooo, Clean Line belched another huge cloud of public relations smoke yesterday designed to cover up the fact that it's going nowhere fast.

Clean Line has entered what it describes as a "partnership" with GE to build three AC/DC converter stations for its beleaguered Plains & Eastern Clean Line project.  Partnership?  I don't think so, because it sounds more like Clean Line simply hiring a supplier.... a supplier it has no money to pay.
This will be GE’s first HVDC project in the United States since acquiring Alstom’s energy portfolio last year. This addition to our portfolio was critical.
GE... trying to breathe new life into bad ideas.  This project, so "critical" to GE's business, has a long, long way to go before building anything.  I wonder if GE has read Clean Line's "Participation Agreement" with the U.S. DOE that requires the company to have financing in place before proceeding?  In order to get financing, Clean Line would need customers.  There are no customers for Plains & Eastern.  Where does GE think Clean Line is going to get the money to pay them for 3 converter stations?

I wonder if GE has heard about the lawsuit filed in federal court that alleges the U.S. DOE exceeded their statutory authority in their review and agreement to "participate" in this project?  Does GE know that the U.S. DOE does not have the authority to condemn and take easements for a Section 1222 project?  And without easements, there's no place for Clean Line to build anything.

Yeah, good luck with that, GE.

But, hey, at least GE beat rival Siemens to a worthless contract with a company that can't get its projects off the ground.  After years of patsy Siemens stumping for Clean Line in Arkansas, Clean Line dumped them and inked a contract with their rival.  And how awkward are things going to get in Houston, doing business with two rival companies?  Clean Line announced years ago that it had signed an "exclusive agreement" with Siemens to develop, design and implement the converter stations for its Rock Island project.  Now that Clean Line and GE have become the Plains & Eastern converter station Bobbsey Twins, is Siemens' Rock Island converter station "agreement" about to be reneged?  I'd have to think that GE must have given Clean Line a much better price for the Plains & Eastern converter stations than Siemens, and, if so, why is Clean Line content to pay more for Siemens converter stations for Rock Island?

Ahhh... the kerfuffles that can ensue when a company signs "exclusive agreements" to obtain supplies from vendors years in advance of final engineering.  Who does that?  Probably not the majority of transmission owners, who prefer to source a project competitively when they're actually ready to build and have financing in place to back up any contracts that they sign.

Or is this just the tip of the iceberg?  Will we now see Clean Line jettison a whole bunch of "exclusive agreements" when the rubber finally hits the road?

And I do wonder if GE will be required to use local labor to build the converter stations?  Since GE's real muscle is the former French company Alstom (gobbled up in 2015), will the actual components be built in France and merely shipped to U.S. sites for assembly by GE contractors?

None of this ridiculous fanfare about GE contracting to supply the converters is even necessary.  Other transmission owners don't need to drum up media interest every time they sign a contract with a supplier.  Clean Line does it because it allows them to hide behind a cloud of smoke and pretend their projects are making headway, instead of answering the hard questions, such as:

Where are the customers?
0 Comments

Clean Line Closing in on Darkened Lounge Journalism

10/19/2016

5 Comments

 
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Well, isn't that nice?  Clean Line's Mark Lawlor got all chatty with the Missouri Times, who tried to create the fantasy that the Grain Belt Express transmission project is pretty much approved by the Missouri Public Service Commission.

Nothing could be further from the truth.

"Clean Line closing in on final order with the PSC"
appears to be the work of a journalist who doesn't understand the PSC process and prefers to present only one side of the story.  Clean Line isn't "closing in" on anything.  The parties (including those who oppose the project, because even if the story doesn't mention them, they still exist) are merely jockeying for position to develop a procedural schedule.  Big. Stinkin'. Deal.  This does not mean that the process has officially even started yet, but once it does, other parties will have opportunity to present evidence to the Commission and argue their position.  The positions of the opposition were enough to convince the PSC to deny GBE's first application in Missouri.  Nothing much has changed.  Except the propaganda... Clean Line is pouring that on real, real thick.

Does Clean Line think that the MO PSC is going to be swayed by propaganda and third party advocacy, instead of evidence and law?
The Grain Belt Express Clean Line wind energy project has made significant steps towards getting the final green light from the Public Service Commission.
Since the case hasn't even started yet, it remains to be seen if Clean Line's newest application will do anything to convince the PSC to approve the project.  Who decided "significant steps towards getting the final green light" have happened?  The Missouri Times?  Clean Line?  I'm sorry, but the only entity who can decide that is the MO PSC, and they haven't decided anything yet.  And what's this about a "final" green light?  This implies that a preliminary "green light" has already happened, and that's just not true.  It's been nothing but RED lights for Clean Line in Missouri so far.

And do you know why GBE "stalled" in July?  Because it filed an improper application in June that was rejected by the PSC.  "Stalled" isn't quite the proper word, denied is more apt.

So, the only "news" here is that the Missouri Times mistakenly believes "the case has officially started with the commission."  That's not news.  I'm pretty sure everyone already knows that.  And... wowzers, on the edge of your seat, folks... the PSC gave the go-ahead to finalize a public hearing schedule.  It doesn't mean the schedule is set or anything.  It means the parties are still arguing about it.  This is not news either.

So, Mark is excited.  I hope you're all excited, too.
“It wouldn’t make a lot of sense to build a line around Missouri,” Lawlor said, adding that he is confident the PSC will rule fairly on the merits of the project, not the factor. “They’re going to judge the case on its merits and whether it meets the standards that Missouri has under its statutes. They will ask, ‘Is there a need for the project and is it it in the public interest?’ We have put forth a strong argument that there’s a need.“
I'm also confident the PSC will rule fairly on the merits of the project.  And that GBE has done nothing much to create any "need" for its project.  Because, at the end of the day, Clean Line's "contract" with Missouri cities isn't binding.  The cities can elect not to participate at a later date, like when they find out that the purported wind energy they are going to have to purchase from another party in order to use GBE's capacity is much more expensive than Clean Line originally quoted.  Because Clean Line does not sell energy.  It can't price energy.  It can only sell transmission capacity, which amounts to an empty extension cord not plugged into any energy source.  Who buys an extension cord that's not plugged into anything and hopes a cheap generator gets built later on?  And guess what?  The lights will not go out in any Missouri city if Clean Line is not built.  And the cities can't even claim any savings from a Clean Line... because any savings are purely speculative at this point.  Without contracted energy, the cost to the Missouri cities is nothing but a big, fat, guess.  So, no need, no public interest, not a public utility. 

And all that blather about what some "Fortune 100" companies want is also a load of who shot John.  If these companies want renewable energy, there's nothing stopping them from buying it.  Right now.  Today.  And if they're really considering opening new facilities in locations where renewable energy is available, the prudent thing to do would be to locate the facilities near renewable energy generators, not in places where they have to pay transmission charges on a "clean" line.  We don't "need to do them" so the companies can pay extra for transmission.

And then Lawlor piles on some condescending "concern" for Missouri.  Don't be fooled... Mark's primary concern is turning a profit for his company, not providing electricity to Missouri.
While Indiana and Illinois signed onto the project before Missouri, Missouri was always seen as the most integral partner of the project. Lawlor says that belief can cause some to believe Missouri would not get much benefit out of the project, even though Missouri would get roughly 500 MW from wind energy as a result.

“Some folks get distracted this is something going through Missouri, the reality is that this is delivering power to Missouri,” he said. “From day one, it was just going to be a Kansas to Missouri line, but we found the Missouri grid couldn’t take that much power.

“Missouri’s key to this whole thing and we hope and expect we can bring those benefits to the state,” Lawlor said.
Missouri will only "get" roughly 500 MW of Clean Line's capacity if load serving entities actually purchase it.  Clean Line isn't giving "benefits" away for free.  If there are no purchasers, there are no "benefits."  And so far there are no firm purchasers.  Clean Line isn't delivering anything to Missouri, or any other state, without firm customers.  In fact, Lawlor forgot to mention that Clean Line's speculative "contract" with Missouri cities also proposes to sell capacity to the cities to export their dirty coal-fired power to other states.  If 500 MW comes in, and 500 MW goes out, what does Missouri get?  Fooled, that's what they'd get.

If Missouri is the key, Clean Line is in a heap of trouble.

So, what is it about The Missouri Times that makes them publish these kinds of stories?  The Gateway Journalism Review took a good, hard look at the Times earlier this year, and found a bunch of unpaid bills, unpaid taxes, and an editor who "was convicted by a Cape Girardeau County jury of three counts of felony forgery. In that case, he was accused of forging checks for an account for a highway expansion project."
A reporter attempted to interview Faughn about his companies’ money troubles. The Missouri Times is headquartered at 129 East High St. in Jefferson City. A reporter found Faughn there at the top of a two-story walkup, inside a darkened room resembling a lounge.

Faughn was standing behind a bar in the room with a laptop computer in front of him. Liquor bottles stood on shelves on the wall behind him. Black and white photos of politicians covered the other walls of the room.

Faughn declined a face-to-face interview. He said he would consider written questions sent by email. Questions were emailed March 17. Faughn acknowledged receiving them March 21, but said he could not respond until next week.

Faughn, the former mayor of Poplar Bluff, launched the Missouri Times in 2013 with former Missouri House Speaker Rod Jetton. Faughn was Jetton’s former campaign manager. Jetton has since severed ties with the operation.
Oh, I see.  This is the kind of publication that publishes glowing stories about Clean Line "closing in" on PSC approval.  It all makes sense now.
But what I really want to know, after reading this story, is when GBE is denied by the MO PSC for the second time, will Clean Line will finally go away?  After all, the story says a "final order" of the PSC is about to happen.  A final order on GBE's first application already happened, but the company has yet to go away.  Let's hope this time final means final.
5 Comments

Your Tax Dollars At Work Making Useless Conclusions

10/5/2016

5 Comments

 
Our government loves to spend money on studies and reports to inform its actions.  However, some government reports just leave the governed scratching their heads.  That's the case with the U.S. Department of Energy's Building Electric Transmission Lines:  A Review of Recent Transmission Projects.

The administration's Quadrennial Energy Review "...recommended that the Department of Energy (DOE) conduct a national review of transmission plans and assess barriers and incentives to their implementation."  The DOE tasked its Lawrence Berkeley National  Laboratory (LBNL) to prepare a report to support its response to this recommendation.  Lawrence Berkeley is an expert on the physical sciences.  Maybe the idea was to apply physical "science" to administrative and social problems?  But it doesn't work.  There's nothing scientific about transmission planning, permitting and siting.  In fact, the biggest problem with this issue is that industry and government has been attempting to make it purely scientific for years and have failed miserably because human factors not considered in science keep derailing the best laid plans of business and government.  DOE might as well have sent a carpenter to install plumbing.

But LBNL bravely soldiered on.  It "selected" nine recent transmission projects for its study.  No mention of how these projects were selected.  It's almost like they cherry picked a representative sample based on secretive criteria.  Who selected these nine transmission projects, and why?  I'd sort of expect something at least equivalent to the standards applied to elementary school science fair projects from LBNL.  Is this how they set up all their experiments?  Any teacher can tell you that the subjects of your case study can drastically affect your conclusions when not selected scientifically.

LBNL selected a mix of both failed and successful merchant and regionally cost-allocated transmission projects.  But it failed to delve very far into how the merchant vs. regionally allocated factor alone affected the projects' success.  A regionally cost-allocated project enjoys a rebuttable presumption of need during the permitting process, while a merchant project relies on committed customers to demonstrate need.  Beyond this broad statement, no attention was paid to how lack of committed customers for merchant projects may have played into failure in the state permitting process.

LBNL used four criteria to evaluate its selected projects. 

1.  The State Approval process.  States have authority for siting and permitting transmission projects.
2.  NEPA Compliance.  Projects sited on federal land must go through the administrative quagmire of the NEPA process.
3.  Public and Stakeholder Involvement.  Why isn't "the public" a stakeholder?
4.  Economic and Commercial Circumstances.  Transmission project economics is always changing.  When combined with a long approval process, transmission economics almost always die a slow, painful death.

So, let's talk about some of the samples.

The Champlain Hudson Power Express.  This project has sailed through permitting.  LBNL thinks this was due to a "proactive" effort on the part of its developers to negotiate with stakeholders during permitting.  The real secret here is that this project is routed entirely underground along road and railway rights of way.  Because it wasn't routed through or visible from private property, it did not inspire any opposition.  Since there was no public opposition, it was not delayed and did not have to waste money on third party advocacy and propaganda efforts to create an aura of artificial support.  This is the most important conclusion revealed in LBNL's study, but sadly LBNL failed to recognize it.

The Potomac-Appalachian Transmission Highline (PATH).  Talk about stating the obvious:

The PATH project is an example of a project that faced significant public opposition.
All of these projects, save the Champlain Hudson project, probably faced significant public opposition.  Public opposition drives the state approval and NEPA processes and causes expensive delays which affect the economic and commercial circumstances.

The Grain Belt Express project.  Another example of significant public opposition driving the state approval process.
As part of its analysis of the public interest, the PSC acknowledged the substantial opposition to the project expressed by business owners, farmers, and individual landowners across whose properties the project was proposed to cross. The Missouri PSC noted, “In this case, the evidence shows that any actual benefits to the general public from the Project are outweighed by the burdens on affected landowners.”
And has GBE done anything to ameliorate that public opposition?  What if it had decided to re-route its project underground along roads and railways?  But, it didn't.  Instead it came up with that weak tea of the MJMEUC "contract" (obviously LBNL didn't bother to scientifically READ that contract and simply took GBE's word for its efficacy).  Seems like it's getting more and more expensive to be GBE with no clear avenue to success.  How much money could this project have saved if it had been properly routed to avoid public opposition in the first place?  Maybe enough to route it underground?  And what if it actually had customers in order to "...rely on buyers of bulk transmission services to establish a project’s financial viability"?  LBNL skates over the fact that Clean Line's problems are of its own making by proposing a purely speculative project with no customers.

The Susquehanna Roseland project.  LBNL seems to think that "mitigation," aka bribes, paid to the National Park Service cost the developer money.

The National Park Service, for example, required significant and expensive mitigation measures from the developers for the Susquehanna-Roseland project in order to gain its approval for completion of the portion of the line that crossed the Delaware Water Gap National Recreation Area, which it is mandated to protect.
The "mitigation" actually turned into a cash cow for the developers.  The ratepayers ended up footing the bill for the $60M "mitigation," as well as an obligation to  pay the developer 12.9% interest on the money over the 40 year life of the project.  It didn't cost the developers a dime.

So, what were LBNL's conclusions?
The development of a transmission project is a commercial venture involving investors who are prepared to incur significant, yet ultimately limited, up-front development costs in return for the opportunity to earn future profits from the sale of transmission services and/or a regulated return on invested capital. Adopting a developer’s perspective enables us to look at the factors reviewed in this report as ones that affect either the cost or time required to construct a transmission project. The extent to which these factors represent barriers to the implementation of transmission projects is thus an assessment of whether these costs or time requirements are avoidable or necessary.
LBNL concluded that these costs are necessary, but that some could be avoided.
There are documented examples of project developers who have sought to reduce these costs and associated time requirements through up-front information sharing and joint (and early) development of mitigation approaches (including abandonment of early proposed and development of new routing options). The success of these activities has hinged largely on the extent to which they lead to meaningful engagement and tangible commitments to address public concerns over line routing.
In other words, coming to a community with a problem and allowing constructive engagement into crafting a solution allows the community to buy into and own the solution.  None of the sample projects actually accomplished this in practice.  They just made smarter routing decisions (underground on public rights of way) in the first place.  Schmoozing and buying off local governments and other "stakeholders" (such as native American tribes, environmental groups, chambers of commerce, etc.) in advance of revealing agreed upon routes to the public doesn't work.  If the newly affected  public (i.e. landowners) did not have a role in crafting the solution, they will oppose it.  The trick is not to propose anything that the landowners can get upset about, such as burial on public transportation rights of way.
The state-centric public-interest issue that arises most vividly for multi-state transmission projects involves the so-called “fly-over” states. These states are situated between the states that are the starting and ending points for a long-distance transmission project. The initial decisions by the Missouri PSC to deny the CPCN application for Grain Belt Express exemplify this issue. The public-interest issue raised by states in the middle is that, at bottom, they are being asked to bear significant portions of the cost or adverse impacts of a project, yet they do not believe they are being provided with sufficient opportunities to share in the benefits of the project.

The LBNL acknowledges the cost of what it calls "side payments" to fly-over states to provide the appearance of some state benefit.  What they mean is construction of substations in fly-over states, claims of jobs, taxes and economic development, political donations to state elected officials, funding for other state or local projects, donations to local universities or public interest organizations, and non-binding "contracts" with local businesses.  It's nothing but smoke and mirrors used to create the appearance of local benefit.  When the smoke clears, the fly-over state is left with nothing, but by that time it's too late and the project is built.  Instead, how about actual benefits for fly-over states, instead of hot air and empty promises?  If a project is not needed in a state, then there can never be a "benefit" from it.  You can't create "benefit" from something unneeded, otherwise it's just a straight up bribe.  The transmission industry needs to quit wasting its money on this stuff and simply design better projects that have a natural public benefit.

The need to satisfy a middle state’s public-interest requirements is a classic example of what economists describe as the role and importance of “side payments.” In this instance, the gains from trade must be sufficient to cover side payments to affected parties who have standing but who would not otherwise benefit from the transaction. Thus, the situation faced by developers, such as those for the Grain Belt Express project, is tangibly and fundamentally (but not solely) commercial in nature. Notably, as discussed, the developers for Grain Belt Express recently reached an agreement to sell power from the project to an association of municipal utilities in Missouri and, based on this agreement, plan to re-file their request for state regulatory approval. It remains to be seen whether the fact of a Missouri entity signing an agreement that could be seen as demonstrating the public-interest value of the project in Missouri will result in the Missouri PSC approving the project on its third attempt in the state.

By the way, GBE did not reach an agreement to "sell power" from the project to MJMEUC, or anyone else.  GBE sells transmission capacity.  It does not sell power.  The only thing GBE has "sold" is space on a wire.  Power sold separately from another vendor.  LBNL needs to apply a little physics to its thinking process to avoid allowing industry propaganda to infiltrate its conclusions.

LBNL also concluded that the federal government is a circus without a ringmaster and the NEPA process is FUBAR.

Wrapping all its conclusions together, LBNL comes up with this:
Developing a transmission project involves simultaneously managing two categories of commercial risk. One is the risk associated with securing the capital necessary to build the project. Eto (2016) focused on one example of capital risk: that associated with seeking regional cost allocation. The other category encompasses risks associated with the actual construction of a project. This report is focused on a key subset of these project-construction risks: the cost of satisfying the due process requirements of state and federal agencies involved in permitting and siting lines, which is often increased when there is organized public opposition to the project. These are necessary costs associated with transmission-line construction. Some can made more manageable through proactive actions by developers. Still others can be made more manageable through the actions of federal and state agencies to enhance the efficiency and accountability of their processes. Thus, while the project review process can be slow and add costs to project development, on the whole transmission lines are being built. Moreover, there are promising signs that both groups are taking actions to improve the processes, both in terms of their duration and the quality of the decisions that get made. We found examples of merchant transmission projects successfully gaining needed approvals and being constructed. Their experiences, in particular, suggest that if the economics of potential projects are sound, someone will find a way to build them.
These costs, ultimately borne by electric customers, become completely unnecessary when projects are designed properly in the first place.  A project that doesn't intrude on the community won't foment opposition.  Underground that thing on public rights of way!  Projects that provide no benefit to fly-over states don't belong in those states to begin with!  Solve your transmission problems with resources closer to home.  It doesn't take a rocket scientist...

As far as the inefficiency of the federal government, can't help you there.  Maybe another report on how to reform the federal government to make it work for the people instead of the special interests?  Maybe the special interests can fund it next time around.
5 Comments

Reporters Report News, They Are Not News

9/27/2016

8 Comments

 
NPR stooped to an all-time low yesterday when it "reported" on another reporter's one-sided story and didn't question the reporter's statements made on behalf of elected officials and landowners that were never interviewed for his story.

Arkansas Business reporter Kyle Massey stopped reporting the news and inserted himself into the story yesterday in NPR affiliate KUAR's "story" about the Plains & Eastern Clean Line.  Massey not only repeated his own story, but also made statements representing the positions of elected officials and mysterious "landowners" he never interviewed for his own story.  Must have been a pretty lazy day at KUAR, when reporter Michael Hibblen chose to let a reporter from another publication make statements on behalf of other people, instead of interviewing those people himself.  Ethics in journalism is dead at NPR.
Hibblen:  "So, I take it the property owners don't want to sell?"
Massey:  "Well, some of them don't want to sell.  And others sort of resent being forced to sell even though they may get a good price for the use of their land."
How many landowners did Massey interview for his story?  None are quoted in this story, so my guess here would be none.  Massey is assuming the position of landowners based on his interview with Clean Line Energy Partners.  It's not a fact, it's an assumption based on the opinion of a company who wants to take land from the subject landowners.  Who says landowners "may get a good price for use of their land?"  Did a landowner say that?  Only a landowner can determine if the price for use of their land is "good."
Massey:  "Well, the delegation would say the difference is that this is the benefit of private company that is Clean Line Energy Partners of Houston and it's a little different from an interstate in that Clean Line has not been declared a utility by the PSC so the Congressional delegation is framing this as an unprecedented partnership between the Department of Energy, which is backing this project, and a private company."
But did the delegation actually say that?  I didn't see Massey quote the delegation in his story either, so how factual is it for Massey to speak for them?
Hibblen:  "What would be the benefits of this project?"
Massey:  "Well there would be a few jobs in maintaining the line, but the main benefits would be to the landowners."
Did any landowner claim a benefit from this project?  I didn't see any landowners interviewed in Massey's story.  He's so far off the mark here!  Clean Line is doing nothing more than attempting to compensate landowners for use of their land.  Legally, it is supposed to be intended to make landowners whole for something taken from them.  It is not a "benefit."  Furthermore, landowners are only being offered Clean Line's idea of "compensation," which many landowners feel does not adequately compensate them for taking their land against their will.

Is Massey saying that the only reason Clean Line is proposing this project is to shower Arkansas landowners with monetary "benefits?"  That's ridiculous!  Clean Line is attempting to build this project first and foremost for its own profit.  It wants to take land from Arkansans for a one-time pittance and then use that land to make money for its corporate investors in perpetuity.

Massey also takes a position on  another monetary "benefit" for Arkansans:
"But the big number is the $147M in taxes that would flow to the 12 counties that the line crosses."
That's $147M over the estimated 40 year life of the project.  That's $3.6M per year, divided by 12 counties, to equal roughly $306,250 per county, per year.  What does that buy?  According to this news story, the annual budget of Crawford County, Arkansas, is more than $7.04M.  $306,250 is chump change in a budget that size.  In 2014, it cost $9,616 per year to educate the average public school student in Arkansas.  $306,250 divided by $9,616 is 31.8 students.  There are 37,122 tax payers in Crawford County.  $306,250 divided by 37,122 taxpayers equals $8.25 per taxpayer.  The cost for Crawford Countians to educate those 38 extra students without Clean Line's contribution would be $8.25 cents per taxpayer.  Clean Line is hardly reducing county taxes by any appreciable amount.  It's not really a "big number" after all.  Massey is assuming that Arkansans are a really cheap date if they would accept such a pittance in exchange for the burden of hosting a ginormous transmission line for 40 years.  How much would the transmission line reduce taxable property values during that 40 years?  How much would it cost the county in public safety spending over 40 years to support the building and maintenance of the transmission line, not to mention the additional cost of any accidents or line failures that Crawford County public safety officials have to deal with?  Is having this hazard in their community really worth what the county is being offered by Clean Line?

Massey claims "there would be cheap energy."  But he provides no facts to back up this presumption.  Does he have any firm quotes from wind energy suppliers?  Does he have any firm quotes on the cost of transmission for this energy?  No, he doesn't.

Massey claims there would be "lasting jobs" in Arkansas to supply the project.  Lasting how long?  Once the line is supplied, the jobs to manufacture parts go away.  Hurtado claims his project would take three years to build.  Therefore the jobs would be temporary, not "lasting."
Hibblen:  "Are the landowners and Clean Line talking possible settlements?"
Massey:  "Clean Line is negotiating with individual landowners and they have commitments with a great many of them as I understand it."
As he understands it.  Where did he get his "understanding?"  Was it from real estate records, or was it from Clean Line, who has a distinct self-interest to misrepresent the number of landowners who have "made commitments?"  Again, Massey doesn't quote any landowners for his information.

In addition, individual landowner "settlements" does not dispose of the legal issues regarding the U.S. Department of Energy's flawed interpretation of federal law to allow it to condemn property for this transmission line.  The lawsuit filed in federal court must be answered and adjudicated.

Massey shares that only "holdouts" are fighting it.  How many "holdouts" did Massey interview?  I would guess none.  How did Massey make his determination that the landowners who have not committed are "holdouts?"

Then he goes into advising landowners who are "holding out" that they are not "selling their land, they are only selling the easement."  I'm sorry, but Massey is not an attorney and has no business expounding on the legal ramifications of selling easements.  Landowners should consult a qualified attorney before selling anything.

Massey finishes up by stating that having an infrastructure project cross your land "can be emotional."  And he informs Hibblen that these landowners "can feel resentment toward being forced to give up any land that they don't want to relinquish."

That sounds rather dismissive.  Instead of addressing the very real and factual arguments of opposing landowners, Massey dismisses them as "emotional" and therefore not capable of rational thought.

Shame on you, Kyle Massey, since you didn't quote one landowner in your story!  I don't believe Massey interviewed even one landowner for his "story" upon which to base his thoughts and opinions about landowners.  That's unethical, from a journalistic perspective.
"So I think a great many people find this attractive and would be happy to have the money for the line coming through their land.
Who are these people?  Massey doesn't quote even one in his story.  He just "thinks" this is how they should respond, after all, it's not his property being crossed.

This whole "report" fairly screams desperation.   Clean Line is desperate to politicize this issue and marginalize landowners who are resisting efforts to "settle" with the company. That Clean Line found a sympathetic ear for their public relations scheme at Arkansas Business isn't surprising.  However, shame on you, NPR!  I'll never believe another one of your stories.
8 Comments

Community Participation in Urban Transmission Plans

9/21/2016

2 Comments

 
Building new transmission is hard.  Building new transmission in urban areas is really hard.  Building new transmission will always foment opposition of some kind.  When the proposal affects urban areas, opposition will be loud, widespread, and fierce simply due to the number of people affected and the lack of space to construct new infrastructure in an already crowded landscape.

I came across an article recently that provides an opportunity to compare and contrast the actions of two different utilities attempting to build new transmission capacity for short distances in urban areas.

Dominion needs to build new capacity in the City of Alexandria, Virginia.  In preparation, it convened a "resident-led work group" and involved city officials in coming up with a plan that was least objectionable to the city and residents.  By doing this, the affected individuals were allowed to "buy in" to a solution that they felt they had some control over.  By giving the affected community a (real or imagined) voice in selecting a solution, opposition was ameliorated.
“In my view, Dominion looked really hard at the input this community had and listened to us around the table. I’ve served on a lot of task groups in Alexandria, but this is probably the best I ever sat on.”
It probably bears mentioning that the Dominion proposals included underground options.
And Mayor Allison Silberberg touted Dominion’s proposal for the fact that both options keep power lines underground.

“The good news is Dominion put forward two alternatives that are, in the proposal, both shown to be underground in Alexandria,” Silberberg said. “That’s really good, because that has been a top concern. We are awaiting more info from Dominion with regard to the specifics, and then once we get that specific info from them, we will be reconvening the work group, which has been excellent, to go over these considerations and the two options.”
Underground proposals rarely gather the same kind of fierce opposition as overhead proposals.  So, good for you, Dominion, for being flexible enough to compromise in order to realize the goals of the project, and not stubbornly insisting on a configuration the community would reject.

Now, let's compare this to FirstEnergy's current kerfuffle in New Jersey.  FE affiliate Jersey Central Power & Light (JCP&L) wants to build a 10-mile transmission upgrade in urban Monmouth County, NJ.  And they want to do it overhead, along a commuter train right-of-way.  FirstEnergy has not consulted with the community, but is insisting on building the project to its own specifications.  Opposition has been huge, swift, and fierce.  Community opponents number in the thousands.  Legislators have gotten involved.  And opposition to this particular transmission proposal has leaked over into FirstEnergy's proposal for a transmission only utility spin-off in the state.  What a mess FirstEnergy has made of this project and its community goodwill.  There's no going back from this.

By refusing to take community suggestion, and insisting that it cannot bury the project along the train right-of-way (although Dominion seems to be able to do just that in Virginia), FirstEnergy has done nothing but encourage opposition to dig in its heels and spread like wildfire.  The MCRP will never be built as currently envisioned by JCP&L.  FirstEnergy cannot bully or buy its way to community support for MCRP.

It's time for some new thinking at FirstEnergy's transmission headquarters.  In days gone by, it was accepted practice for a transmission utility to simply buy enough community support to get a project approved despite community opposition.  A utility never had to compromise when it could buy enough support to fool regulators and provide "political cover" for elected officials to claim that the community at large supported the proposal.  A utility simply presented its planned project as a fait accompli and ignored any community opposition.  The times, they are a changing.

Dominion has accepted that there is a better way to get transmission built without widespread community opposition that delays projects and increases their cost unnecessarily.  FirstEnergy is still banging its corporate head against a brick wall, refusing to change, and causing delays and unnecessary costs for projects it does manage to get approved through third-party advocacy.

There is a better way.  And it works.  If FirstEnergy wasn't so mismanaged, it would clean house in its transmission department and restock it with folks from Dominion.
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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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