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How To Avoid Opposition To New Transmission Lines

7/3/2022

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I read a couple articles this week that demonstrate exactly how crucial host landowners and communities are to building the "clean energy" utopia.  They can't do it without us, folks!

They say that recognizing your flaws is the first step in solving your problem, but I'm not so sure these folks get it yet.  The solution is simple... don't cause impacts to land use and community values.  If you don't cause impacts, nobody cares all that much, certainly not enough to invest years of valuable time, and years of personal savings, fighting transmission proposals.  It's just that simple!!!

This vapid article on CNBC is not accurate.  Here's just one snippet of its inaccuracy:
On June 16, FERC issued issued a first step — technically called a “notice of proposed rulemaking” — that it aims to amend laws making it easier to connect sources of electricity to the grid.
FERC doesn't make laws, nor amend them.  It's an executive/administrative body.  It carries out the laws enacted by Congress.  Only a legislative body makes laws.  Just how dumb is this reporter anyhow?  FERC writes regulations, aka "rules, for how the laws Congress makes shall be carried out.  The laws governing connection to the electric grid haven't changed.  It's just that FERC wants to reimagine them to make them do something not written in statute.  And maybe that's all you need to now about FERC's rulemaking... and this reporter's knowledge of the facts.

Another fallacy...
The most productive geographical regions for wind and solar are generally far away from urban centers where the energy is needed.
The article includes a map of wind energy potential in the U.S.  The most productive places for wind are offshore, which is conveniently located near the most populated cities in the U.S.  It doesn't even make sense.  The reality is that the politically powerful people who live in those cities don't want wind energy infrastructure junking up their own back yard... the ultimate NIMBYs!  They want to put it in rural America, far from their own home, so they can reap all the benefits without any of the impacts.  The cities want to close all the "dirty" electric generators in their own back yard so that they can have a cleaner environment.  They are poised to spend trillions doing so.  If that's how they want to spend their money, have at it.  But when someone from rural America objects to having new industrial energy facilities to serve the cities sited in their own community, they get villainized as hating "clean energy."  They get accused of working for the Koch brothers, every armchair environmentalist's ultimate fossil fuel satan.  And when rural communities ask to have new transmission connecting new generators to cities buried on existing rights of way, they get told that's "too expensive" or simply impossible.
There’s also the possibility of putting transmission lines underground, which, “is much more economic today than it used to be,” Gramlich said. But it’s still expensive, as much as ten-fold the cost, depending on the terrain you are trying to go through, according to Robb of NERC. In some cases, for example, putting a transmission line means blasting through granite. So, while “that’s a viable thing to do, it’s a very expensive thing to do,” according to Robb.
It's really not that expensive, especially when it is sited in existing rail or highway rights of way.  Maybe double the cost, not ten times the cost.  Buried HVDC only needs a narrow, shallow trench 5 feet deep.  These guys need to break out of Thomas Edison's basement and read up on new technology... or better yet ask an engineer and quit trying to pretend they are experts.

So, the cost of cleaning up cities is not "too expensive" but the cost of avoiding impacts in rural communities is "too expensive."  This is nothing more than a value judgement -- the cities are "worth it" but the rural areas are not. 

What do any of these people (including the reporter) know about what motivates transmission opposition?  Only Sandy Howard knows, and the reporter conveniently wrote little about why Howard has devoted many years of her life to stopping NECEC.  Instead, the reporter focuses on the competing energy companies who poured money into stopping NECEC for their own reasons.  The reporter tries to make you believe that transmission opponents are just figureheads doing the bidding of fossil fuel companies who want to stop new transmission.  That's not true at all.  In fact, in my 15 years doing this, I have not seen any energy interests get involved in a transmission battle, except that one.  One instance does not make a trend.  These people need to quit making excuses and stop underestimating grassroots opposition.

If they want to end opposition, they need to find out what's causing it, and there's no better way than to engage with transmission opponents.  However, these self-congratulating chuckle heads prefer to insulate themselves and simply make crap up.  Such as this lovely theater at a recent industry nerdfest:
Overcoming NIMBYism on TransmissionLast August, the Niskanen Center and the Clean Air Task Force released a report that called for adoption of the “5 P framework” to overcome opposition to clean energy infrastructure. The construct builds on the transmission concept of “planning, permitting and paying.”

“We propose adding ‘participation’ as a fourth ‘P’ and then ‘process’ as [the fifth]. Because one of the challenges of transmission [is that] every single project is unique, because every state in every region is different,” said Liza Reed, Niskanen’s electricity transmission research manager for climate policy. “The reason that we raise participation up to an equal level with the other Ps … is that groups are really siloed in each of those policies right now. There is stakeholder engagement in planning. There is stakeholder engagement in permitting. There is stakeholder engagement in paying. But different stakeholders get brought in at different points, and that’s when groups start getting frustrated. And I think when folks hear the word ‘participation,’ they think angry town halls and lawsuits. But the whole point of bringing participation into a consistent process is to avoid that.”
Lawrence Berkeley National Laboratory’s Joseph Rand offered an observation from his analyses on the siting and community impacts of large-scale wind and solar.
“What the wind energy developers have learned over time is that we need to move away from a process that people call ‘decide, announce, defend,’ [to one] called ‘consult, consider, modify, proceed,’ so that you’re meaningfully engaging local stakeholders in that process and being open to actually modifying your proposal,” said Rand, senior scientific engineering associate for the lab’s Electricity Markets and Policy Group.

...said the people who have never opposed transmission or been involved with any group that has.  In fact, these people LOVE transmission.  If they have a "plan" to end transmission opposition, it's probably not a very good one.  They don't understand the problem they're trying to solve.  These are the people who are trying to use transmission opponents as figureheads on their battering ram.  Niskanen needs to quit trying to pretend it represents transmission opposition groups.  It has nothing to do with any group.  Niskanen can take its 5 P's and turn them into one U.  Underground.  Simplicity is key, not years of ineffective policy-jockeying and "participation" that does not actually include any of the affected landowners and communities.  Shut up already, Niskanen.  You don't speak for us.  We're perfectly capable of speaking for ourselves.  You're just incapable of listening. 

And if you thought their ideas were bad, how about these from the CNBC article?
To spur grid expansion, the federal government should consider a tax credit for large scale transmission investment in current budget reconciliation policy discussions and the FERC proposed rule for expansion, he said.
But yet in the same article, another guy says, "It’s not because there aren’t investors ready to fund it."  So it's not a problem of lack of investment -- but let's give billions of our tax dollars to transmission investors?  Why?  Because they want to fill their pockets?  That's the only answer to this contradiction.  Investment tax credits for transmission are nothing but a give away.  They won't actually help transmission get built.  They will just help a handful of people to get rich trying.

And then there's this:
Congress needs to act to give a federal agency, either the Department of Energy or the Federal Energy Regulatory Commission (FERC), authority to site transmission lines. “They could pass a statute that’s about one page long,” Pierce told CNBC in a phone conversation at the end of May. “This is not hard to accomplish if you’ve got the political will.”
Pierce knows that there will be opposition to such a federal authority, to which he says: Too bad.
“You cannot allow the citizens of a single state to block actions that are imperative for the welfare of the citizens that the whole country much less can you can you afford to allow the citizens of one little town or one landowner to,” Pierce said. “It’s just frustrating."
Perhaps Pierce should ponder how frustrating it is for a farmer to have a portion of his business confiscated to build transmission lines from which he would receive no benefit when that transmission line could just as easily be sited on an existing road or rail right of way.  I'm pretty sure Pierce's "frustration" would pale in comparison.  Giving more power to the federal government has NEVER solved a political uprising, instead it exacerbates it.  Having federal authority to site gas pipelines certainly hasn't stopped grassroots opposition to them.  Too bad for Pierce... it's never going to happen.  The federal government only has power where states don't.  And states have power over electric transmission siting and permitting.

Again... why do this when the real solution is so much simpler?  Several contemporary examples prove that siting transmission underwater or on existing rail or road rights of way does not attract opposition.  SOO Green Renewable Rail.  Champlain Hudson Power Express.  Lake Erie Connector.  New England Clean Power Link.  Vermont Green Line.  Clean Path New York.  Need I go on?  These are the transmission projects that are sailing through siting and permitting because they don't require new rights of way and they don't impact host landowners or communities.

We've been beating this drum for several years now by sharing this idea any place we can.  Maybe some of these morons are starting to catch on, but prefer to pretend it was their own idea?
Also, Gramlich sees a potential path forward in upgrading existing transmission lines. There, you don’t have the siting battles. “Reconstructing or replacing the old lines with new lines is a is a major opportunity,” he told CNBC. “There’s very little public opposition to transmission over existing corridors.
Ding!  Ding!  Ding!  Ya think?  However, this is from the same guy who thinks we need transmission investment tax credits.  But, whatever.  The basic kernel of an idea has managed to squeeze its way into Rob's brain after running into his wall of resistance to new ideas.  Opposition doesn't form if you don't cause impacts.

Quit wasting time, energy, and money on stupid, ineffective ideas to quell opposition.  The only way to avoid opposition is to bury new transmission on existing rights of way.

Now get crackin'.  Time's a wasting.
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Clean Line Is Less Popular Than Gonorrhea --  And Other Not-So-Funny Jokes

6/28/2022

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According to this article, Arkansas PSC Chairman Ted Thomas said that he'd rather have gonorrhea than the Plains and Eastern Clean Line.  Hardee-harr-harr.
Thomas said the failed 700-mile HVDC Clean Line transmission project from Oklahoma to Arkansas, which the U.S. Department of Energy agreed to support, “had higher negatives than gonorrhea.”
According to the same article, U.S. Department of Energy transmission facilitator Michelle Manary also thought making funny jokes about Plains & Eastern at some boring transmission "summit" was smart.
“We have battle scars from that,” joked Michelle L. Manary, acting deputy assistant secretary for DOE’s Energy Resilience Division.
Hardee-harr-harr, Michelle.  You're a bigger comedian than Ted.

Poor widdle Michelle has battle scars from fighting all those nasty landowners and their lawyers and elected representatives.  I'm so sad for her.
News flash for Michelle!  The other side also has battle scars after being treated like dirt under Michelle's big government boot.  They also have drained bank accounts, lost sleep, no free time, postponed plans for their properties, and a long period of their life filled with uncertainty and frustration.

And it all happened because the federal government acted politically to put its thumb on the scale for Clean Line.  In the end, it was all just a gigantic waste of time and money.

Once bitten, twice shy, Michelle?  What's she going to do with her new authority to act politically to put a thumb on the scale for merchant transmission?
To avoid that problem in the future, Manary said DOE will focus not on transmission corridors but on specific projects.

“It’s much easier to study a specific project,” she said. “And I think it’s easier also for the states and utilities to comment on it and coordinate and facilitate with it because they know what we’re talking about — not just a broad swath of land.”

But wasn't Plains & Eastern a specific transmission project?  One less popular than gonorrhea?  One that scarred everyone?  I guess Michelle's scars aren't so bad after all.

Hardee-harr-harr.  You two are about as funny as stepping in dog poo.


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Randolph County Commissioners Spill Truth About GBE

6/23/2022

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Here's a very well-written article about GBE's recent antics in Randolph County, Missouri.  Leave it to the local media to actually tell a little truth!

The first truth is that the amendments to Missouri eminent domain law made by the legislature this session aren't applicable to Grain Belt Express.  The legislature did NOTHING to protect these landowners.  It just tossed them under the bus to slow it down a bit for the rest of the traffic.
Missouri House Bill 2005 has been heralded as a win for farmers facing eminent domain from transmission line companies, but it won’t protect Randolph County farmers from the Grain Belt Express, Randolph County Commissioners said Monday.

But Commissioners John Truesdell, John Hobbs and John Tracy said the bill won’t affect eminent domain proceedings brought by Invenergy Transmission for its Grain Belt Express, a new long-distance transmission line in the works for the past 10 years.

The new law will not help farmers keep their land. “Grain Belt is not affected by this,” said Hobbs. “I, myself, say it’s hogwash. It’s not protecting the farmers on Grain Belt. It’s protecting the farmers for anything after Grain Belt.”

And maybe not even as good as Grain Belt... since GBE's permit requires the company to give condemned easements back to the landowners after 5 years in the event it does not have financing, while the new "protective" legislation allows 7 years.  Yeah, protect those landowners with new legislation!

The second truth is that merchant transmission owner Invenergy does not have enough customers for this project.  No customers, no revenue, no financing, no project.  (More on this in my next blog, you won't believe what's turned up!)
But Randolph County Commissioners say the company isn’t following normal procedure and has not contracted with local energy companies to provide energy at lower costs.

“You have to drop something of value in Missouri before you can do eminent domain,” Truesdell said. But the commissioners say they have yet to hear of any local utility company that has contracted with Grain Belt to move their product.

“I haven’t heard from the county coop that we’re going to get any energy,” Hobbs said.
There also aren't any local jobs or other benefits.
Ivenergy says Grain Belt Express will play a major role in economic recovery and growth in the Midwest by delivering thousands of jobs, billions of dollars in energy savings, and tens of millions of dollars for local communities and landowners.

Randolph County Commissioners say they haven’t seen any contracts or data that make them believe that.
The Commissioners also share about Invenergy beginning construction work without proof of financing, something its PSC permit prohibits.
The company also has to have a financial plan, which it doesn’t have, said Truesdell. “We have a lot of red flags in Randolph County.”
Though the company doesn’t have permission from Randolph County, it has started construction off Highway 3, Truesdell said. “It’s how they do business.”
Randolph County filed a moratorium to stop work until Grain Belt complies with all regulations, said Truesdell.
“They went in and did some dirt work,” said Hobbs. The landowners signed a contract with the company.
Invenergy is literally trying to bulldoze its way through Missouri, even though it cannot construct anything in Kansas or Illinois.  What's the point?  Who builds a transmission line that doesn't connect with anything on either end?

Maybe it's this kind of company...
“They didn’t act like any other utility company we’ve ever dealt with,” said Truesdell in May. The company struggles with communication; one hand doesn’t know what the other is doing, he said.
A little over two years ago, Grain Belt was supposed to come visit with the commissioners, said Truesdell. It never did. The company has to have approval from the county to begin construction, which it doesn’t have, he said.

It's all a very precarious house of cards.
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Grain Belt Express Seeks to Push Costs onto Kansas and Missouri

6/8/2022

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Remember the good old days when Clean Line Energy Partners promised the state regulatory commissions that it would not recover its costs from Kansans and Missourians?  CLEP thought it was a negotiated rate merchant transmission project where only its voluntary, contracted customers would pay for the project.

Those days are over.  New owner Invenergy has been begging the Federal Energy Regulatory Commission to create a new revenue stream for GBE from captive regional electric ratepayers.  This means that electric customers that will receive no benefit from GBE would end up paying for a portion of it.

Why?  Apparently Invenergy "needs" this additional revenue because it doesn't have anywhere near enough customers for GBE to support the financing of the project.  Invenergy wants FERC to create new "products" that GBE can supply, such as "standby" emergency service to supply energy in an emergency.  By "standby" they mean they need to be paid to stand by in case of emergency and promise to commandeer capacity from their paying customers to serve some future "emergency" that may or may not occur.  GBE proposes:
...large, merchant interregional HVDC transmission lines that, although in non-emergencies are contractually dedicated to the interregional delivery of a pool of renewable resources to more distant loads, can nonetheless also be made available should explicitly designated contingencies arise such that the power from these different capacity sources can then be available to help mitigate the designated contingency -- even where such delivery could require the power to flow in the opposite direction from that called for in the usual schedules. For example, the GBX Line could have in place arrangements in advance that would allow any of the regional transmission systems to override its dispatch for a period of time so that the GBX Line could be dedicated to addressing contingencies when they arise. It will be important that these arrangements allow such transmission systems to relax the interconnection and/or
injection limits that may have been authorized for normal operations. For example, if the
prevailing dispatch would deliver Midwestern power to Eastern markets, there must be
arrangements in place to ensure that when necessary to schedule power in the opposite
direction, such Midwestern transmission system is not constrained from receiving such power based on interconnection or injection limits that might be in place during non-
contingencies.
In other words, GBE wants to sell capacity attached to a string so that it can pull back when it wants to. 
Indeed, assuming the GBX Line was subscribed to its full capacity (approximately 4,000 MW), had only a fourth of its subscribers agreed in advance to be curtailed if required for certain emergencies, an additional 1,000 MW would have been available to the system operator to alleviate the shortages in local capacity resulting from the storm.
Gosh, I wonder who would reap the rewards of emergency use?  Would it be the contracted customers, or would it be Invenergy?  What customer would sign up to use this line with the knowledge that it can be shut off at any point in time?  Grain Belt Express cannot be relied upon to meet customer energy needs.  What happens if two "emergencies" (or just one wide-spread one) occur at the same time?  Who has priority over capacity?  Which emergency is more severe?  Which one pays the most to Invenergy?  Yup, this is all just crazy talk.

GBE also tells FERC that it needs these things:
Grain Belt Express requests that the Commission initiate a study to value the reliability benefits that interregional merchant transmission lines will provide and develop a template of the types of tariff-based arrangements that the Commission would accept. The Commission should direct regional markets to: (1) establish products or services to capture those reliability and resilience benefits; (2) develop specific methodologies to place a value on these services; (3) confirm that transmission systems will be allowed to relax interconnection and/or injection limits for deliveries from interregional merchant transmission lines during system emergency conditions; (4) direct system planners to account for and adequately value interregional merchant transmission in planning efforts; and (5) when accounting for interregional merchant transmission in planning, properly allocate network upgrades required to integrate and interconnect interregional HVDC lines, consistent with beneficiary pays cost allocation principles.
Translation:
1)  Pay GBE for "reliability and resilience" benefits that it provides but that the paying ratepayers don't actually need (because if they were needed, the regional planners would order the upgrades and the costs would be paid by everyone in the region).  GBE proposes that all ratepayers in up to three planning regions (SPP, MISO and PJM) that span 2/3 of the continental U.S. pay these charges although they aren't GBE customers and don't get any benefit from the project.
2)  Find a way to create a regional rate scheme for GBE.
3)  Allow GBE to take over control of the grid when there's an emergency in order to inject more power.  Safety limits be damned.
4)  Include GBE in regional transmission plans, even though the regional planning authority doesn't find a need for the project.  If they can shoehorn it in the plan, next they'll claim regional ratepayers have to pay for it, too.
5)  Don't make GBE pay to interconnect its project to the transmission system.  Instead, make captive regional electric consumers foot the bill for GBE's connections.  When a new generator or merchant transmission line wants to connect to the existing grid, studies must be done to ensure that the new connection won't overload the grid and cause outages.  Any upgrades necessary to the grid to support the new connection become the financial responsibility of the interconnection customer (GBE).  GBE wants to upset that now and make captive customers pay those upgrades, claiming they somehow get some "benefit" although they are not customers of the project.

The long and short of it is that GBE is trying to get captive electric consumers in Kansas and Missouri to pay for a portion of its merchant transmission project that will benefit voluntary customers in other states or regions.  All promises to state utility commissions that GBE won't charge its project to in-state consumers are now void.  But why should the consumers of Kansas and Missouri pay for an electric transmission line that does nothing but burden them?

But wait... there's more!  In a different recent FERC comment, Invenergy shares the latest news on GBE:
"Many regions lack clear and consistent rules for the interconnection of transmission lines.
For instance, MISO currently allocates all transmission interconnection upgrade costs entirely to the customer, but may allocate a portion of those same upgrades to load if they were identified within the generator interconnection process, and some regions (i.e., SPP) have no applicable rules that govern injection from such lines. Grain Belt Express has experienced this first hand in developing an approximately 800-mile, 4,000 MW high voltage direct current transmission line that will interconnect in and carry power to and from the SPP, MISO and PJM regions. But its development is complicated by the lack of any consistent rules governing its interconnections in the different regions. And further complicating the process, MISO has refused to include Grain Belt Express’ interconnection positions as assumptions in the base case models and studies for its long-range transmission planning initiative (“LRTP”), which is intended to identify and address issues looking 10-20 years into the future. This refusal to account for the expected injections and withdrawals of an advanced-stage merchant transmission project not only complicates Grain Belt Express’ own development, it means that MISO’s LRTP results may themselves be flawed and inefficient.”
So while GBE is moseying around Kansas, Missouri and Illinois telling people it is "wrapping up" its pre-construction activities and needs to condemn and take private property in a big ol' hurry so it can get started, the truth is that Invenergy can't connect its project.  Its development is "complicated" by interconnection requirements.  It is literally a road to nowhere right now.

Have a good long look, everyone, at the stuff that Invenergy hoped you wouldn't see.
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Whistling Robots and Spa Showers:  Solyndra 2.0 Begins

6/6/2022

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Remember Solyndra?  I mean really remember... how the U.S. Department of Energy gave away more than half a billion of your taxpayer dollars to a for-profit company that lived large for several years before defaulting on the "loan" it had received?    Perhaps we could all use a refresher, now that the DOE is poised to give away another 2.5 billion of your hard-earned taxpayer dollars to a handful of elite rich guys who want to live large on it while it lasts... perhaps for the next 40 years.

Here's a good refresher article....
The glass-and-metal building that Solyndra began erecting alongside Interstate 880 in Fremont in September 2009 was something Silicon Valley hadn’t seen in years: a new factory.

It wasn’t just any factory. When it was completed at an estimated cost of $733 million, including proceeds from a $535 million U.S. loan guarantee, it covered 300,000 square feet, the equivalent of five football fields. It had robots that whistled Disney tunes, spa-like showers with liquid-crystal displays of the water temperature, and glass-walled conference rooms.

“The new building is like the Taj Mahal,” said John Pierce, 54, a San Jose resident who worked as a facilities manager at Solyndra.

But it turned out that the company had puffed itself up on its DOE loan application and that it didn't have enough future revenue to pay off the loan.  It declared bankruptcy and its owners whistled Disney tunes off into the sunset.  No harm, no foul.  Worse than that, the government functionaries who furthered this scam also received no punishment.  The DOE Inspector General's report revealed just how much malarkey was going on, but ultimately nothing was done about it.
We also found that the Department’s due diligence efforts were less than fully effective. At various points during the loan guarantee process, Solyndra officials provided certain information to the Department that, had it been considered more closely, would have cast doubt on the accuracy of certain of Solyndra’s prior representations. In these instances, the Department missed opportunities to detect and resolve indicators that portions of the data provided by Solyndra were unreliable. In the end, however, the actions of the Solyndra officials were at the heart of this matter, and they effectively undermined the Department’s efforts to manage the loan guarantee process. In so doing, they placed more than $500 million in U.S. taxpayers’ funds in jeopardy. 
So why wasn't there due diligence at the DOE?
While not the focus of the investigation, we were mindful of the concerns that had been raised regarding possible political pressure applied in the Solyndra decision-making process. Employees acknowledged that they felt tremendous pressure, in general, to process loan guarantee applications. They suggested the pressure was based on the significant interest in the program from Department leadership, the Administration, Congress, and the applicants.
Well, guess what?  That same pressure is being used again to push new loans and revenue guarantees for speculative merchant transmission projects.  DOE has apparently learned NOTHING from Solyndra and its employees are having a grand time playing footsie with merchant transmission developers while sitting on a fresh pile of taxpayer money.  Your money!

The Infrastructure Investment and Jobs Act, passed by a bipartisan vote last year is now being implemented by the good political drones at DOE.  The IIJA gave DOE $2.5 Billion for its new Transmission Facilitation Program.  The "program" makes available new loans, public-private partnerships where the government kicks in some of your money to fund for-profit merchant transmission, and capacity contracts for new merchant transmission.  DOE seemed pretend surprised at a recent webinar that the only provision of the program that anyone is interested in is the capacity contracts.

The DOE has authority to sign capacity contracts with new transmission projects.  The capacity contract will purchase room on the transmission project to transmit electricity, however DOE doesn't serve any electric customers and has no use for it.  It will simply pay for something it will never use.  This purchase is supposed to inspire others to also buy capacity on the transmission project.  However, if these others had any use for the capacity, they could purchase it themselves without DOE involvement.  The problem is that nobody wants to purchase capacity on speculative merchant transmission projects.  DOE is likely to be the only "customer" propping up an unused and unneeded road to nowhere... through your backyard and productive agricultural property.

A merchant transmission project, first and foremost, must accept all financial risk for its unneeded, speculative project.  There can be no captive customers.  A successful merchant may negotiate rates with voluntary customers who may find its project useful.  But what if nobody finds it useful?  Then it fails, and the merchant loses his investment.  But, not anymore.... the federal government is going to step in to financially prop it up using your money.  This means we're going to suffer a lot more greedy merchants, stuffed egos with childish hairdos who belong to the elite political party in power.  These new elite rulers will spend their capacity contract money however they like... ugly orange offices with pictures of dead rock stars, renovated fire houses, and a lavish lifestyle on a fat salary playing transmission make-believe.

Does all this make you furious?  It should.  Michael Skelly's next transmission brain fart will be perpetrated on your dime.  Fortunately, you can tell DOE what you think about their new Transmission Facilitation Program during a public comment period that only runs until June 13.  Submitting a comment is quick and easy using this online form (click the little blue "comment" box at the top).  You can even make your comment anonymous. 

Have at it, folks!  Maybe Skelly's new robots will come programmed with a funeral dirge for his new ideas.
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Not Quite a Sellout?

5/31/2022

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That's what St. Joseph, Missouri's News-Press called what happened at the Missouri legislature this year regarding Grain Belt Express.  The editorial was very clear that what happened should not be called a success story.
But what must be the most difficult pill to swallow is the legislators’ statements that House Bill 2005, which reforms eminent domain law for future transmission projects, represents one of the success stories of the 2020 session.

Lawmakers should be willing to call it what it is. Perhaps not a sellout, but a difficult compromise that comes at the expense of those landowners who are most affected and led this fight.

But did it REALLY reform eminent domain law in a meaningful way for future transmission projects?  Or did it just throw wide the door and roll out the welcome mat for future "fly over" merchant transmission projects?  I guess we'll have to see what those "grateful" landowners think the next time their legislators "not quite" sell them out in favor of an out-of-state company taking property to benefit its own profits.

The editorial says:
You could point to several benefits of Grain Belt, the 780-mile transmission project bringing wind power from Kansas to populations further east.

The customers on the receiving end get plenty of benefits. But who, exactly? Unlike something more tangible like gasoline, it’s hard to see where electricity is directed on the grid, but the fact that Grain Belt will end near Indiana suggests that many of its beneficiaries are there and not here.

Invenergy, the for-profit company building Grain Belt, could benefit nicely when it starts to sell the power.

Several misconceptions here.  There are no customers "further east."  Only wholesale electricity suppliers who have signed contracts with Grain Belt Express can be customers.  The only customers GBE has at the moment are the Missouri municipalities.  No power-buying entity "further east" wants to buy power shipped on GBE.  There are no takers.  And since this is a market-based merchant transmission project, lack of voluntary customers demonstrates that there is no need for GBE.  Without customers to buy power shipped on the line GBE fails because it has no revenue stream to pay back any borrowed funds for construction.  There are no beneficiaries for GBE right now, except for a couple of Missouri municipalities who have signed up to use around 5% of the project's capacity.

And let's talk about capacity... that's the only thing GBE is selling.  It's selling room on its transmission line, it's not selling power.  Any power that may flow over GBE must be purchased separately from another entity than GBE.  GBE is not selling power!

Although, News-Press maybe accidentally gets pretty close to the truth, "Invenergy could benefit nicely when it starts selling power".  That's right... Invenergy could sell power from its own generators, and only its own generators, and ship it "further east" on GBE, making the transmission line an exclusive, private driveway for only Invenergy to use.  Would the Missouri PSC and the Missouri legislature be okay granting eminent domain for that?  It wouldn't be a public use.  It would be a private use.

I dunno... maybe they'll pull their head out of their vanilla panna cotta and begin pondering?

At any rate... News-Press needs to quit sounding so fatalistic.  This is not the end of opposition to GBE, it's just the beginning of Missouri landowners finding out who their elected officials really are.
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Missouri Landowner Not On Board With Legislation

5/22/2022

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Here's all you need to know about the recent Missouri legislation, courtesy of Ted Rogers, a landowner affected by Grain Belt Express.
This spring, the legislature passed a bill that clamps down on the use of eminent domain for transmission lines. The legislation, now headed to the governor’s desk, requires a company or an investor-owned utility to pay 150% of market value for an easement on agricultural property. It also requires a project to deliver a proportional amount of power to Missouri so that it doesn’t just use rural counties as an energy superhighway on the way to bigger cities.
But House Bill 2005 contained the following words: “These provisions will not apply to applications filed prior to Aug. 28, 2022.”
That means Grain Belt, granted regulatory approval in 2019, is grandfathered in.
“We thank our many supporters for their tireless efforts in ensuring that this legislation recognized the legal rights of Grain Belt Express as a previously approved project that will continue forward toward full construction,” said Nicole Luckey, senior vice president of regulatory affairs for Invenergy, in a statement. “Missouri lawmakers brought stakeholders together around this important legislative compromise, which will benefit Missouri families, farmers, workers and businesses for decades to come.”


That’s not how Rogers sees it.
“I have a hard time with the Legislature right now,” he said.
Despite Invenergy's cheerful chirping, however, GBE still has a number of insurmountable hurdles in its path, not the least of which is that it does not have enough customers to finance the building of the project.

Perhaps it's not coming after all...
1 Comment

Comment on DOE's Transmission Facilitation Program

5/17/2022

1 Comment

 
Sharpen your pencils, transmission warriors!  The DOE is in the process of making good on the part of the "Bipartisan Energy Bill" that allows the federal government to prop up failed and unneeded transmission projects with your tax dollars.  It's quick and easy to drop them an electronic comment via the internet.  You can submit your comment here by clicking on the blue "comment" button at the top left of the notice and filling out the form that pops up.  It's really just that simple!  You'll be glad you did when an unneeded transmission line without any customers is planned to cross your property, and the federal government signs up to be a "customer" in order to make the project "needed" so that it may be financed and built.

As I wrote about extensively last year, greedy merchant transmission developers (hello, Clean Line) whose projects failed because they could not find any customers to sign up for service have set their bought and paid for Congress critters in motion to create fake "customers" for their unneeded projects so that they can be "needed", financed and built.

The DOE is seeking comment on how to implement this ridiculous, new "program" set in motion by the passing of the Bipartisan Infrastructure Bill.  They have written a rather short (in regulatory terms) plan on how they are going to carry it out.
The Infrastructure Investment and Jobs Act (IIJA or the Act) directs the Secretary of Energy (Secretary) to establish a program, to be known as the “Transmission Facilitation Program” or “TFP,” under which the Secretary shall facilitate the construction of electric power transmission lines and related facilities. The U.S. Department of Energy (DOE or Department) Grid Deployment Office is issuing this NOI to notify interested parties of its intent to implement the TFP and to describe the proposed approach for participation by eligible entities in the TFP. The Department also seeks input from all stakeholders through this RFI regarding the application process, criteria for qualification, and selection of eligible projects to participate in the TFP.
Comments are due June 13.
What should you say?  There are certain questions asked in this RFI that you may want to address, such as:
(19) The IIJA calls on DOE to seek to enter into capacity contracts that will encourage other entities to enter into contracts for the transmission capacity of the eligible projects. On what basis should DOE assess whether a capacity contract with an applicant will encourage other entities to enter contracts for transmission capacity?
This has to be my personal favorite question, based on the stupidity of the presumption alone.  If the government buys something with your tax dollars, will you then be inspired to buy the same thing?  Or maybe buy the thing from the government, who isn't really using it?
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Maybe Tom Sawyer persuaded a bunch of little boys to white wash Aunt Polly's fence, but if electric companies want to purchase capacity on new merchant transmission projects, it's a business proposition based on need and cost, not an emotional moment where electric companies just want to keep up with the federal government's activities.  If there was a need for the service, the electric companies would purchase it from the transmission developer directly.  When they don't, it means the merchant transmission project isn't needed.  DOE is going to be stuck with that unneeded transmission capacity that it can't use because it doesn't serve any electric customers forever (or 40 years, as written in the law).  How do you think the government can persuade others to buy something they don't need just because the government bought it first?  This concept is going to end in complete failure... just a complete give away of our tax dollars to speculative merchant transmission developers.

Here's another you may like:
12) Recognizing that transmission projects are located based on the availability of generation, and ultimately customers to buy that generation, and have limited long term direct employment impacts:

  • What equity, energy and environmental justice concerns or priorities are most relevant for the TFP? How can these concerns or priorities be addressed in TFP implementation?
And here's something that's not really a question, but feel free to comment on it anyhow.
DOE participation is to help provide certainty to developers, operators, and marketers that customer revenue will be sufficient to justify the construction of a transmission line that meets current and future needs. Applications for capacity contracts are not required to account for National Environmental Policy Act (NEPA) environmental impact review, because DOE's entry into a capacity contract does not independently trigger NEPA review.
Yup, they really wrote that into the law, even though they have no authority to circumvent the National Environmental Policy Act, which triggers a review every time an action of the federal government affects our environment.  Since this "program" is being carried out for the purpose of "facilitating" (financially propping up) transmission projects that would otherwise not be built, DOE IS affecting the environment with its decisions to shower tax dollars on unneeded merchant transmission projects.  Expect this to be challenged in court, but nothing says you can't get your licks in now and be right from the start.

And here's another topic that DOE pretty much ignores.  Merchant transmission is market based.  That is, there must be a market need for it.  Customers must be willing to pay to use it.  Merchant transmission has no captive customers who must pay for the project as part of their electric bill.  Merchant transmission is a completely optional, money-making endeavor and never necessary for you to get economic, reliable electric service.  Those kinds of projects are ordered by grid planners and recovered involuntarily as part of your bill.  Merchant Transmission is lightly regulated by the Federal Energy Regulatory Commission because it does not have involuntary customers who must be protected.  FERC may grant what's known as "Negotiated Rate Authority", which allows the merchant transmission developer to advertise its service and negotiate rate contracts with voluntary customers.  FERC regulates whether this process is fair to all customers.  But if the DOE is required to purchase capacity on merchant transmission projects, then it no longer qualifies as merchant transmission because DOE is a captive customer who must be protected with regulated cost of service rates.  When a merchant with Negotiated Rate Authority advertises and sells available capacity, there are strict guidelines the merchant must follow.  But what about DOE?  Who's going to be regulating them to make sure their sale of transmission capacity to all those future fence painters, who just gotta have what the government already bought, is fair?  Is one branch of the government going to be regulating the other?  DOE and FERC need to address how this will be handled, even though the merchant transmission lobbyists who wrote the law did not address it (probably because... well... stupid... they don't know how rates work).

And for those readers who successfully battled the Plains and Eastern Clean Line at great expense of time and money, perhaps you'd like to share a little wisdom you gained from the experience of DOE "participating" in that project for the express purpose of using federal eminent domain when Arkansas said "no"?  In that instance, DOE required Clean Line to have capacity contract customers before building, and Clean Line never could find any, which was the ultimate reason DOE cancelled its "participation agreement."  With that knowledge, how could DOE do better this time around in order to avoid years of misery?

The commenting form is quick and easy.  Please use it.  Time is short.  Sometimes the best defense is a good offense.  And DOE's new program is about as offensive as it gets.  Don't wait to act until a transmission road to nowhere that doesn't actually deliver electricity anywhere because there are no real customers taking service is sited outside your front door.
1 Comment

Transource Loses Appeal

5/5/2022

0 Comments

 
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The Commonwealth Court of Pennsylvania has denied Transource's appeal of the Pennsylvania Utility Commission's denial of its siting application.
Because we conclude that the Commission’s decision denying the Siting Applications and rescinding Transource’s provisional CPC was in accordance with Pennsylvania law, including Sections 1501 and 2805(a) of the Code, and Section 57.76(a) of the Regulations, and is supported by substantial, credited evidence
of
record, we affirm.
In plain language, this means that Transource loses and the PUC's rejection of the Transource project stands.  Congratulations, folks!

However, Transource's suit in the United States District Court for the Middle District of Pennsylvania is still alive, but it is now more unlikely than ever that Transource will prevail.  Transource's argument there is that PJM determines when transmission lines are needed and the state's only role is to decide where to put it.  That argument has never made sense, and makes even less sense now.  Here's why:
As for Transource’s arguments that PJM’s determination of need would be binding due to this matter involving issues of interstate regional transmission subject to FERC oversight,the ALJ held that the Commission was obligated to make an independent determination based on Pennsylvania law. (Id.at 82, 86, 99-102.)The ALJ further observed that while FERC has exclusive jurisdiction over the interstate transmission of electric energy and wholesale electric process, that jurisdiction was limited to matters that are not subject to state regulation. (Id.at 85 (citing Section 824(a) of the Federal Power Act, 16 U.S.C. § 824(a)).) According to the ALJ, FERC recognized this limitation by stating that there is “longstanding state authority over certain matters that are relevant to transmission planning and expansion, such as matters relevant to siting, permitting, and construction” and that the FERC was in noway invoking “an exercise of authority over those specific substantive matters traditionally reserved to the states . . . .”(Id.(quoting Transmission Planning and Cost Allocation by Transmission Owning & Operating Pub.Utils., 76 Fed. Reg. ¶¶49,842, 49,861 (Aug. 11, 2011) (FERC Order No. 1000)).) This means, according to the ALJ, that FERC Order No. 1000 was “not intended to dictate substantive outcomes” or to allow FERC to “determine what needs to be built, where it needs to be built, and who needs to build it.” (Id.at 85 n.13 (quoting S.C. Pub. Serv. Auth. v. Fed. Energy Reg. Comm’n, 762 F.3d 41, 57-58 (D.C. Cir. 2014) (internal quotation marks and citation omitted)).)
The PUC's decision was in accord with state law.  PJM has no authority when it comes to siting and permitting.  End of story.  If Transource was smart, it would withdraw the federal petition and run as fast as it could go back to Ohio.  But it probably won't.
What an astonishing waste of hundreds of millions of dollars that electric customers will be paying back (plus interest) in their monthly electric bills for years to come.

Here's something interesting from the Court's Opinion:

As for the resolution of congestion in the APSRI, it does not appear that we have ever held that congestion, which is an economic consideration, is sufficient on its own to support need or necessity under Pennsylvania law.
This "congestion relief" project was doomed from the start.  Relieving congestion is not "need" in the same realm as reliability concerns.  PJM should think long and hard before trying this again.  PJM should take the advice of its Market Monitor and revise its market efficiency project process to produce fair and accurate results that can withstand the test of time.  The Court said
It was not just OCA’s witness who criticized PJM’s cost-benefit analysis, but PJM’s own Independent Market Monitor who suggested that its market efficiency process, which includes the cost-benefit analysis, be reevaluated and that the actual costs and benefits of a project should be considered and not ignored in determining whether a market efficiency project is needed.
The "need" for this project began to evaporate before it was even ordered.  Congestion is an ever-shifting economic concept that cannot be used as the basis for a transmission project that will take years to approve, permit, and construct.

Bravo to the PA Office of the Consumer Advocate for all its hard work to protect Pennsylvania consumers and for supplying the evidence that demonstrated how flawed PJM's market efficiency process actually was.

Many concerned citizens felt that PJM was lying about the project and its cost benefit analysis.  In the end, the truth was revealed.  How could anyone ever trust PJM's magic math findings that new transmission is needed ever again?
0 Comments

Marketing to Mayberry 2022

5/4/2022

4 Comments

 
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It's no secret that the politicians currently in power and their deep pocketed owners are bellying up to the bar for a new transmission feeding frenzy.  But there's one thing standing in their way.  Y-O-U!  Despite a long string of failed transmission projects, such as PATH, MAPP, MCRP, RICL, WindCatcher, Project Verde, NECEC, Transource IEC, Plains & Eastern, Swepco Kings River, Western Carolinas Modernization Project, BPA I-5 Corridor, Northern Pass and many more I'm too busy to look up right now, these people think building a whole bunch more transmission is going to be a snap.

NOT!

They seem to think maybe they need a new approach because what they've been doing is not working (see list above).  People are still opposing new transmission rights of way across their properties, and these people are winning.  They discussed their new approach at a recent Advanced Energy Economy webinar this week. Here it is, courtesy of RTO Insider:
But building transmission, she said, “takes patient money” and “a deep engagement with many, many regulatory bodies” and stakeholders.
“The very big reality is, whether we’re doing a 100-mile [transmission] line or a 500-mile [transmission] line, pretty much anyone can stop it. You can have local jurisdiction, county jurisdiction, state jurisdiction. And you don’t typically have condemnation rights.”
Overcoming landowner opposition “takes a lot of engagement. It takes a lot of humility. You’ve got to talk to people from where they’re at. You can’t come in political. You can’t come in with preconceived ideas. You can’t come in even with the implicit idea that this is essential for the greater good. You have to come in, when you’re talking with landowners, profoundly respectful, that you may be dealing with heritage ranches that have been in families for over a century. And you need to be willing to sit down, listen, have hard conversations [and] follow up again.
“And then you have to work with their concerns. … They can say, ‘You know, I am protective of this particular view. Can you work on the routing around this precious part of the land for me?’ And so I think that that’s really the key to engagement.”
Webster said Pattern takes a broad view of its “host community.”
“You’re a host community if you’re hosting an actual facility with turbines or panels. You’re a host community if you’re hosting a substation, or a major piece of transmission infrastructure. But to us, you’re also a host community if you’re supporting the public good by allowing your transmission line to pass through your county or your property. And so we created standardized community benefits packages based on just mileage that [is] consistent across our entire footprint.”

Oh, humility.  Who do you think you're fooling, Pattern?  You used eminent domain to threaten landowners in New Mexico and you got that authority from the state's industry-funded "Renewable Energy Transmission Authority."  Pattern bought eminent domain authority.  Are you now suggesting that paying off a local government to look the other way while you condemn and acquire rights of way across privately owned land is "humility"?

And let's think about those "preconceived ideas" that are supposed to be left at the door, like "greater good" and politics.  They're not abandoning that nonsense, they just think landowners are too stupid to understand it.  It's not an understanding or education problem.  Landowners are far from stupid.  This is nothing more than 2022's version of Marketing to Mayberry, where failed transmission developer Clean Line Energy Partners hosted a conference that supposed developers needed to dumb down their spiel so hillbillies and hicks in the sticks would go for it.  That failed miserably.  Clean Line Energy Partners no longer exists.

Get real -- there's no respect when transmission developers are "negotiating" with landowners while holding the eminent domain card.  That's coercion.  The transmission developer is going to build the cheapest project it can and your view and your use of your own land doesn't matter.

Transmission is poised to fail again because the developers and the politicians STILL refuse to acknowledge the answer that's right in front of them.  Don't cause impacts.  Don't burden people's land.  If you don't do these things, landowners and local communities simply don't care.... build whatever you want!  There's a network of highways and rail that already connect our country, and new technology that allows HVDC to be buried in a narrow trench on these existing rights of way is readily available to those who want to use it.  Landowners know this, therefore they will NOT allow the continued destruction of rural places in the name of "clean energy" for parasitic places far, far away.

Real respect is burying your projects on existing rights of way and causing no impacts at all on "host communities."

Marketing to Mayberry failed before, and it will fail again.
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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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