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Neighbors United Celebrates Court Victory

3/30/2017

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Just released by Neighbors United:
We the members of Neighbors United Against Ameren’s Powerline would like to thank everyone who supported us in our effort to prevent ATXI from building a project that had no input from the people it would affect the most – Us the citizens of Adair, Knox, Marion, Shelby and Schuyler counties. We would like to thank the county commissioners who continued to listen to their constituents concerns about the project and decided that what was in the best interest of the citizens was to affirmatively say NO!, to the project. They listened to the citizens and not the pressure from big business or the Missouri Public Service Commission (PSC). We would also like to thank our attorneys Jennifer Hernandez, and Arturo “Art” Hernandez for their hard work and dedication in litigating the case through the PSC and the Appellate Court.

Yesterday, March 28, 2017, the Missouri Court of Appeals, Western District issued its decision in the Mark Twain Transmission Line Project. In a unanimous decision, the Court of Appeals vacated the Report and Order issued by the PSC. The court ruled that a Certificate of Convenience and Necessity (CCN), which grants the utility the authority to build the transmission project, can only be issued after a utility has received permission from a county to build a power line. This decision negates the CCN that was granted by the PSC last year. That CCN had approved the line on the condition that ATXI obtain the permission to hang the lines over county roads from each of the 5 affected counties. The CCN granted overstepped the PSC’s authority, because the hearing should never have been heard unless and until the PSC received the county assents given to the utility.

This is a tremendous victory for our members and our local government. For almost three years local citizens of these 5 counties have struggled to have their voices and concerns heard. Too often big corporations, like ATXI come into our communities and talk about knowing what is in the best interests, and then bring big money to try to drown out the local citizenry. They rely on statements like “in the best interest of the state”, “lower costs”, future opportunities, etc. They forget that people, like those members of Neighbors United, who work the land, live in the community, raise families, pay taxes and vote, need to have a voice in the process as well. When the local citizens try to give their input, companies like ATXI turn around and demonize the hard working people who only want to protect their livelihood and property.

Yesterday every one of the citizens of the 5 counties involved in opposing the Mark Twain Transmission Line Project, were vindicated. Not only were the citizens of the counties directly affected finally justified, but all of the citizens of Missouri were on the right side of the law. Yesterday, the courts guaranteed that the voice of the individual citizens in this great state should be and can be heard. The courts vindicated what we, the members of Neighbors United Against Ameren’s Power Line have been saying since 2014 – big business must cooperate with local government and individuals for the good of everyone. The process of approving CCN’s and utility applications by the PSC must be accompanied by input of local government and citizens.

The input of our elected county officials is just as important as the engineers, the input of state and federal agencies, the big money, the profits, and convenience of conglomerates such as ATXI. For the past 3 years, we have fought to have our voices heard. Yesterday, the court gave a voice to the farmers, ranchers and local citizens of Neighbors United as well to all the citizens of Missouri. They ensured that local governments are not overlooked or ignored. They guaranteed local governments a place in the decision making processes that affect their constituents the most.
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The Battle for Property Rights Still Electrifying the Prairie

3/28/2017

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News release from Block GBE-Missouri:
The small savings offered to municipalities cannot overcome the tremendous burden to Missouri landowners that would come with the Grain Belt Express, says Block Grain Belt Express-Missouri, in the wake of last week’s evidentiary hearing before the Missouri Public Service Commission.

“A majority of the Commissioners denied the project in 2015 because the burden on affected agricultural businesses and landowners was so great,” said spokesperson Jennifer Gatrel. “Nothing has changed.”

Claimed savings for municipalities were concocted with irrelevant and speculative studies which supposedly showed the savings from the Grain Belt line. The actual savings were much less than claimed when examined at the hearing.

Missouri Landowners Alliance (MLA) provided unquestioned expert testimony from agricultural experts and business owners demonstrating the huge financial burden GBE would place on citizens across northern Missouri. MLA expert Don Lowenstein testified that local tax benefits claimed by GBE could not be accurately predicted beyond the first year and that actual tax benefits to localities are likely to be much less than promised by GBE and its witness. Expert appraiser Kurt Kielisch provided testimony demonstrating property value decline and other impacts to agricultural and rural residential property that would be caused by GBE. A Ralls County Commissioner also provided testimony refuting GBE’s claims of local benefit, and declaring his staunch opposition to the project.

The Missouri Public Service Commission Staff, who acts as an advisory party in the public interest, continues to maintain their position that GBE must receive approval to cross county roads from the commission of each county where the line is proposed before the PSC can approve GBE’s application. Today, the Western District of the Missouri Court of Appeals issued a decision on county consent related to the recent Ameren transmission case, finding that that the PSC cannot issue a permit until after all the consents of the county commissions are obtained. The Court vacated the PSC’s decision in the Ameren case, where a conditional permit was issued before county consents were obtained. Grain Belt Express does not have county consent.

“At the hearing, I learned that GBE hugely discounted its service in its offer to Missouri municipalities in order to gain a toehold in the state, and that the normal price of GBE’s transmission service is five times the number offered to the municipalities. There are currently no takers for service to Missouri at the regular price. If GBE cannot find customers willing to absorb the loss created by the offer to the municipalities and make the project profitable, is there any guarantee that GBE will even build the station in Missouri proposed to serve municipalities?” asked group President Russ Piscotta after watching the hearings.

“We are nearly four years into this fight,” stated Jennifer Gatrel. Property rights are the backbone of farming and ranching. We keep on winning because we can't afford to lose. Somehow, someway we will always find a way to protect what we hold dear. It has been the most amazing journey of my life seeing so many diverse people come together from across the country to fight a common wrong."

Background: Grain Belt Express is a $2.7B, 700-mile high-voltage direct current transmission line purposed to move electricity from Western Kansas to Indiana and eastern markets. The speculative venture seeks profit for its investors from electricity market price differentials.
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Slick Willie Comes to Mayberry

3/25/2017

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The week-long hearing on Grain Belt Express' third application to the Missouri Public Service Commission has been completed.  It was easy to watch the festivities on the PSC's live video feed.  If you missed it, you can watch archived video here.

Many are wondering what happened when Slick Willie visited Mayberry.

That's right, I said "Slick Willie."  Get your mind out of the gutter!  "Slick Willie" is defined as
Slick Willie is a term that, upon hearing it, is understood to mean something uncomplimentary towards the person to whom it refers.  Those who are called Slick Willies are cunning and deceptive people who are superficially appealing and polished, but who are shallow and glib, and able to deftly execute convincing arguments that favors the con man and defrauds the mark.
And the self-awareness award goes to Clean Line's David Berry, for accurately describing his company as "sounding a little slick willie" when responding to questioning by the PSC Commissioners.

Slick Willie came to Mayberry this week, and the results weren't flattering.  Slick Willie doesn't play well in Mayberry.  Using Mayberrians as puppets to spew Slick Willie talking points was a miserable failure.  Mayberry just doesn't do Slick Willie.  But before we get to that, let's take a look at the Clean Line line up.

Company president Michael Skelly came across as arrogant.  He didn't seem to know much about anything, deferring all the hard questions to underlings testifying in his wake.  It must be really hard to work at a company where your fearless leader is so clueless about your business.  Skelly began every answer with the word "so."  There's been a lot written about this linguistic fad.
To my ear, that backstory "so" is merely a little geeky, but it rouses some critics to keening indignation. A BBC host says speakers use it to sound important and intellectual. A columnist at Fast Company warns that it undermines your credibility. A psychologist writes that it's a weasel word that people use to avoid giving a straight answer.
As used by Skelly at the hearing, it seemed to mean, "your question is unworthy of me, let me explain your question to you."  Or maybe it was more the avoiding a straight answer variety?  At any rate, Skelly needs to remove that word from his vocabulary immediately.  It makes him sound like an arrogant jerk.

When asked, "Did you personally fly in here to meet with utilities?" Skelly chose to argue with the questioner about the structure of the question, instead of answering it.  I didn't think it was a hard or deceptive question.  Skelly tried to pretend "personally" meant flying in on a personal jet (which he claims not to have....yet).  But Skelly couldn't remember how he got to Missouri.  He suggested maybe he took the train.  That was ridiculous.  A simple "yes" would have caused much less attention to the subject.  Trying to be slick willie when asked a direct question by a Mayberrian is a very bad plan.  And we'll get to that later, too.

And finally, on the subject of Skelly... who does your hair, man?  Did you pay a lot of money to a stylist who told you that looks good?  Save it for glitterati gatherings in Houston.  Mayberrians only use styling products to make hair stand up when arranging kewpie doll coifs on their babies prior to a professional photo shoot.  One Mayberrian commented, "His hair is ridiculous.  He's a grown man!"

Mark Lawlor.  Poor Mark, he's just not physically cut out to be a slick willie witness.  Mark has a tendency to grow a giant red dot between his eyes when trying to slick willie his way out of a direct question.  He also develops big red blotches all over his face.  And he scratches himself.  And drinks way too much water.  And sniffles into the microphone incessantly, while playing with a pen prop.  I kept waiting for him to stab himself in the eye with it and end his misery, but Mark persevered.  Although, appearing nearly doubled over on the stand while hugging himself didn't give me much confidence that he was going to make it to the end.

David Berry.  Slick willie.  One Mayberrian wonders if they keep him locked up in the basement of Zilkha Towers, hunched over his abacus, only let out to testify at regulatory hearings.  That's one unique dude!  But somehow he managed to be more personable than all the rest combined.  Too bad no one else in the hearing room was on the same astral plane as David Berry.

And now let's take a look at how Clean Line used Mayberrians to bolster their case at the hearings.

Wayne Wilcox.  Mr. Wilcox wrote all his testimony himself, and he was very generous with his elaboration of his opinions.  He stated that opposition to Grain Belt Express was taking away his rights.  Mr. Wilcox's opinions are factual, while the opposition's opinions are falsehoods.  I'm not going to elaborate anymore.  Mr. Wilcox's brief stint on the witness stand is in the archive.  I urge you to watch it.  Pop some corn to eat while you watch.  I did.  It didn't even look like he was wearing Clean Line's expert twitness shock collar.  What a pity!

Randolph County Assessor Richard Tregnago.  Nice tie!  When presented with a document that responded to one of the data requests addressed to him, Tregnago acted like he'd never seen the document before.  I think maybe he admitted that Clean Line supplied it.  He admitted that it is impossible for anyone to determine the amount of taxes GBE will pay after the first year.

MJMEUC witness John Grotzinger.  Oh, where to begin?  He denied that GBE had inserted a line into his testimony.  When faced with evidence that they did, he had to admit it.  Mr. Grotzinger wrote an email in late 2015 where his opinion of GBE wasn't exactly flattering.  I think maybe he thought that GBE was trying to buy its way into Missouri.  Mr. Grotzinger couldn't define the term "utilization rate."  Mr. Grotzinger admitted that GBE at normal pricing was more expensive than buying wind over the SPP transmission system.  An attempt to rehabilitate him was made on redirect, where he was given a more recent (higher) figure for SPP transmission rates by his attorney, and asked to plug that number into calculation of his exhibit tables.  After many long minutes of Mr. Grotzinger punching numbers into a calculator, and coming up with the number "7", the attorney did the math himself and asked Mr. Grotzinger if the attorney's math was correct.  Pathetic.  Since when do attorneys submit testimony?  It sort of looked to me like Mr. Grotzinger's testimony was done by someone else, maybe slick willie?  I dunno, but you should watch his testimony yourself to see what you think.

And, finally, the superstar award goes to MLA attorney Paul Agathan.  Clearly the best attorney in the room throughout the week.  Mr. Agathan had obviously researched each witness and their testimony.  He asked pertinent questions, and in numerous instances witnesses had to "walk back" or explain prior statements that were not proven factual.  And he did it all in a courteous, methodical fashion.  He never resorted to slick willie tactics or a disrespectful tone.  It takes my breath away to realize how much work Mr. Agathan did to prepare for this hearing, although he was the only attorney in the room not walking out with a fat pay check.  Anyone less than honest should fear Mr. Agathan.  He's a true Mayberry hero and deserves the thanks and gratitude of every Mayberrian!

So (heh), initial briefs are due in a couple weeks.  Reply briefs a couple weeks later.  Then we wait for the decision.  That gives you plenty of time to watch the archived videos for yourself.

Well done, Mayberry, well done!
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Randy Dowdy Teach Big Lesson

3/16/2017

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

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

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

Lesson #1

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

And this is where the dispute begins.

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

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

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

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

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

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

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

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

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

Next Step…Litigation?
Lesson #5

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

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

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

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

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

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

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

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

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

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

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

Construction management, environmental protection, and agricultural impact mitigation plans are just that... plans.  They offer no real protection for landowners.  They're just pieces of paper.  Don't be fooled.
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Where's The Customers, Clean Line?

3/8/2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Where's the customers, Clean Line?
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Illinois Appellate Court Hears Grain Belt Express Arguments

3/3/2017

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The appeal of the Illinois Commerce Commission's decision to grant a CPCN to Grain Belt Express under the state's "expedited" review process was heard by the Illinois Fifth District Appellate Court this week.

You can listen to the oral argument here.  The recording is only 48 minutes long -- oral arguments have time limits.  Extensive briefing on all the issues has already happened.  Oral argument is for a condensed version of important points, and a chance for the judges to ask questions of the parties regarding their arguments.

Chuck Davis, representing the Illinois Farm Bureau, presented the argument of the appellants (the parties who want the court to reverse the ICC's decision).  It was a pretty simple argument -- Grain Belt Express is not eligible to apply under the expedited process because it is not a public utility, and its attempt to do so was likened to "a square peg trying to force itself into a round hole." 

Davis pointed out the difference between two different permitting processes available in Illinois.  The expedited process used by GBE begins with the words, "A public utility may...".  GBE is not a public utility, therefore it could not apply under that process.  GBE's application admitted that it  "will be" a public utility -- in the future tense -- but not that it was -- in the present tense -- when application was made.

It's as simple as that.

And why is this important?  Because there are two different procedural routes for obtaining a permit from the ICC. The longer, traditional process is for new entrants who are not public utilities.  The expedited process is reserved for public utilities.

By using the expedited process improperly, GBE rushed inexperienced landowners through the permitting process in an amount of time "less than a baseball season."  It also automatically granted GBE a finding under a different section of statute that allows the company to proceed quicker with eminent domain takings.  Clean Line's Rock Island project was denied a finding under that section when it used the longer process to secure a CPCN for an identical project.  RICL must go back before the ICC to gain the finding that was automatically granted to GBE through the expedited process.

I sort of wish someone had asked Clean Line's attorney why the company applied under different processes for identical projects.  What made GBE different from RICL so it could use the expedited process?

The ICC's attorney made a few revelations during his tired argument that the two different processes are actually the same, before giving a preview of his future argument before the Illinois Supreme Court that really wasn't relevant to this case.  At 24:40 he said GBE is for interstate transmission of electricity through Illinois to be used by the public within the MISO and PJM wholesale electricity market regions.  He followed that up by clarifying at 30:27 that the Grain Belt Express project is an interstate transmission line for electricity "merely passing through Illinois."

Well, I'm glad that cat's been let out of the bag, after years of listening to Clean Line claim that the line would provide electricity to Illinois.

At 32:30 one of the judges asks whether GBE was a public utility prior to the ICC's findings under the expedited process.

Of course it wasn't.

Later, GBE's attorney began listing all the things the ICC found regarding the company's ability to construct and finance the project.  But the same judge interrupted him at 40:33 to query whether all those things were speculative.  There's no evidence that GBE was doing those things, only evidence that GBE could do them.  Listen very carefully as this testy exchange goes on between the judge and GBE's attorney, with the judge trying to make his point, only to be interrupted by GBE's attorney to say that "we are" hiring contractors and proceeding to continue his list of what the ICC found GBE capable of doing in the future.  The judge finally reasserts control to say that he understands what the ICC found the company capable of... but GBE doesn't have any past record of actually doing those things.  "As a company, GBE has never done it."  GBE's attorney meekly agrees... and suddenly he's done.

The judges had no questions for the appellant attorneys.

And now we wait for the court to issue a decision.

I'd say this went very well for the appellants.
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Another County Rescinds Support of Grain Belt Express

3/3/2017

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The Moberly Monitor-Index reports that the Randolph County, Missouri, Commission has rescinded its prior letter of support to allow Grain Belt Express to cross county road rights of way.  This makes Randolph the sixth county to rescind its support of the project.

Grain Belt Express approached each of the eight counties crossed by its project in 2011, long before affected landowners learned about the project.  Clean Line's Skelly has said that going to local governments for support before landowners find out about his projects is a strategic move, because the first place upset landowners go is to their local governments.  Skelly believes that if he has already gained local government support, these upset landowners will have nowhere to go with their opposition.  It really doesn't work that way.  When local voters approach local governments, the interests of some foreign corporation don't hold up, and actions taken in their favor may be rescinded.  That's what's happened in Missouri.

Randolph County has gone from supporter to neutral.
The withdrawal of official support also comes not long after John Hobbs was voted in as a commissioner for Randolph County. Hobbs has been a vocal opponent of the Grain Belt Express.

Hobbs confirmed that the commission had rescinded the letter of support but declined to comment further on the matter.

Truesdell clarified that, although the commission has rescinded its official support for the wind energy transmission line, the attitude hasn't changed. The commission assumed a neutral stance on the matter around two years ago.

"The only thing that prompted action is that our legal counsel said that, if we wanted to be truly neutral, we should draft a letter to rescind the prior document," Truesdell said.


The move was meant to solidify the neutral stance of the commission, setting aside personal views the commissioners might hold, Truesdell said.
Such as the avid support of Randolph Co. Commissioner Wayne Wilcox, who talked quite a bit about Randolph County's support of Grain Belt Express in his testimony to the PSC supporting the project.  He even submitted the county's letter of support as evidence to back up his claims.

The Moberly Monitor reports:
Randolph County Commissioner Wayne Wilcox said he was not present for the commission's vote to rescind the letter of support for the Grain Belt Express.
There is an indication that the company would need to earn the approval of individual county commissions to allow the line to cross roads within the counties before a permit is issued.

The MO PSC Staff's report stated
As was its position in Case No. EA-2015-0146, it is still Staff Counsel’s position that, not only must Grain Belt have the consent from each of the Missouri county commissions for its transmission line to cross the public roads and highways in their respective county before a Commission certificate for the line is effective, Grain Belt must have those consents before the Commission can lawfully issue the certificate, i.e., those consents are prerequisites to the certificate.
So the rescission of county support is a big deal right now.  Instead of gaining support, Grain Belt Express is losing support going into the PSC evidentiary hearings later this month.

And since I didn't see anything about Hannibal's draft power purchase agreement in surrebuttal, I guess I'm going to have to pop my corn for the cross examination of another witness, now that Bob won't get his chance at 15 minutes of fame in the witness chair.  Clean Line's counsel might have to snap their "Expert Twitness Shock Collar" on someone else. 
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Offshore Wind Would Require Little New Transmission

2/24/2017

1 Comment

 
A study released by the University of Delaware and Princeton University found that the east coast PJM grid can handle huge injections of offshore wind.
The UD and Princeton team showed conservatively that, with some upgrades to transmission lines but without any need for added storage, the PJM grid can handle over 35 gigawatts of offshore wind—that’s 35 billion watts—enough to power an estimated 10 million homes. They also found that the PJM grid could in the future handle twice that amount, up to 70 gigawatts, as wind forecasting improves, allowing the power operator to better predict and harness more wind.
That's really not surprising.  PJM has been looking at offshore wind for years.  What is new is the buy-in of eastern states to make it reality.

Coastal cities have a strong network of transmission that has been bringing them fossil fuel energy from the Ohio Valley for the past century.  The new report says that network should be upgraded to support reverse flow, that is from east to west, instead of west to east.  Sure sounds like a better plan than to build a new, expensive, gigantic network of transmission from the west to move an inferior terrestrial wind resource to the coastal cities.

And with the operation of the first offshore wind farm in Rhode Island well underway, eastern cities are also realizing the economic growth that comes with new industry.  A thriving offshore wind economy will breathe new life into eastern ports... where those receiving the benefits of the offshore energy will also receive the economic benefits of creating it in the first place.  It's a way for eastern cities to keep their energy dollars at home in their own communities.

Even with some minor transmission upgrades, the beneficiaries of the offshore wind transmission will also be those affected.  A plan to ship wind energy from the Midwest causes burden on Midwestern landowners who receive no benefit from the transmission, and this is what has delayed plans to build "clean" lines for the purposes of meeting some imagined eastern "need" for Midwest renewables.

Offshore wind is a win-win idea for eastern cities.  The only ones clinging to last decade's bright idea of shipping Midwestern renewables coast-to-coast are transmission builders, terrestrial wind companies, and Midwestern state governments who thought they saw a huge tax benefit from producing energy for export.  However, state tax benefits intended to encourage the building of energy for export have gone just a bit too far, as states like Oklahoma and Wyoming have had to roll back tax credits and impose new production taxes on wind generation in order to balance their budgets.  Becoming the "powerhouse" for other states isn't all it's cracked up to be.  The companies who own the energy infrastructure are the ones who end up with all the money, and the citizens are often left at the alter with broken economies and a wasted environment.

Every region has its own renewables, and developing local renewables is a much smarter choice than importing them from other regions.

We really don't need billions of dollars of new transmission lines to power the east coast with wind.  By using what's available locally, the east coast will make the switch to cleaner energy better, faster, and without requiring outlandish sacrifice from other regions to serve eastern needs.
1 Comment

Federal Overreach on Transmission

2/18/2017

7 Comments

 
Cupcakes:  delicious little pieces of heaven!  You probably don't think you need a cupcake until someone puts one in front of you.  All of a sudden, you want a cupcake.  You need a cupcake.  You must have a cupcake!  But you would have gone happily along without that particular cupcake because you really don't need a cupcake, and there will be more cupcakes offered down the road.

The National Association of Regulatory Utility Commissioners (NARUC) baked a cupcake for landowners last week, but snatched it away at the last minute.  Does this mean that NARUC will stop baking cupcakes?  Nope.  It means that NARUC will get back in the kitchen to perfect its recipe before offering a new and improved cupcake in the future.

At its recent winter meeting, NARUC's Electricity Committee proposed a Resolution opposing the U.S. DOE's misuse of Section 1222 of the Energy Policy Act of 2005 to preempt state authority to site electric transmission lines.
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But the resolution was tabled at the last minute.  E&E News did a whole bunch of speculating about why the Resolution was tabled, however it appears that E&E wasn't in the room and created its story from comments and opinion.
The move Tuesday at the winter policy meetings of the National Association of Regulatory Utility Commissioners in Washington was "unusual" said Elizabeth Jacobs, a member of the Iowa Utilities Board and vice chairwoman of NARUC's Electricity Committee.

"It wasn't supposed to be directed at any one project," said Jacobs. Rather, she said the resolution "was supposed to be about defending state jurisdiction [over transmission siting] going forward."

But there was some confusion "that made people really nervous," in particular its specific mention of the Plains and Eastern Clean Line proposed by Clean Line Energy Partners LLC, she said.

"I think some people had concerns with language about NARUC taking all necessary actions" to challenge the line, Jacobs said, and thought "Let's think this one through a little more."

The resolution was proposed by Sam Britton, a member of the Mississippi Public Service Commission. He did not return a call seeking comment.

Britton had explained to the NARUC committee that the resolution was "resource neutral" and not anti-wind or anti-renewables, said one attendee.
Well, gosh, I wonder where that "confusion" came from?  Could it have come from Clean Line Energy personnel lobbying at the conference?

The Resolution doesn't mention any particular project.  But it uses an example of DOE's misapplication of Section 1222 on the only project it has decided to "participate" in.  That project just happens to be Clean Line's Plains and Eastern Clean Line.  The Resolution explains Section 1222.  It states:
WHEREAS, Provision “(d) Relationship to Other Laws” of Section 1222 states that “Nothing in this section affects any requirement of ... (2) any Federal or State law relating to the siting of energy facilities; or (3) any existing authorizing statutes,” and
 
WHEREAS, On March 25, 2016, the DOE announced its plan to own the portion of a proposed power line that would traverse the State of Arkansas and rely on Section 1222 to exercise a Federal right of eminent domain in that state; and
 
WHEREAS, DOE has stated that it does not plan to request a site permit from the State of Arkansas but will instead rely on the federal Condemnation Act, which it says authorizes DOE to exercise eminent domain authority over any property so long as DOE has the legal authority to acquire the property, and so long as the project will constitute a public use; and
 
WHEREAS, NARUC has a long-standing position that the siting of electric transmission facilities should be subject to the exclusive jurisdiction of the States, notwithstanding the limited “backstop” siting provision in Section 1221 of the Energy Policy Act of 2005 (which NARUC opposed); and
 
WHEREAS, Without taking any position whatsoever on the wisdom of constructing any transmission project in which DOE wishes to participate or the type of power envisioned to be transmitted over such project, NARUC wishes to state its position on the proper interpretation of Sections 1221 and 1222;
NARUC recognized that Sec. 1222 does not authorize DOE to site the line, but reserves siting decisions to the states.  However, DOE has misinterpreted the statute to grant itself siting authority for a transmission project.  And if this interpretation stands, other states in the WAPA and SWPA federal power marketing territories (AR, KS, LA, MO, OK, TX, MT, ND, SD, NE, MN, IA, WY, CO, NV, AZ, CA, UT and NM) will be wrongly subjected to federal preemption of their state siting laws for any future transmission projects under Sec. 1222.  It's not a matter of "if," it's a matter of when.  NARUC has fiercely defended state authority to site and permit transmission projects.  Section 1221 of the same Energy Policy Act authorized the Federal Energy Regulatory Commission to act as a "backstop" to site and permit transmission lines in a DOE-designated National Interest Electric Transmission Corridor in the event that a state failed to act, or could not act, on an application for said transmission.  FERC conflated a failure to permit with a failure to act.  After a prolonged and hugely expensive court battle, the 4th Circuit determined that a denial of an application is an action of the state, and "backstop" authority was not triggered by a state denial.
We have analyzed the phrase "withheld approval for more than 1 year." Read by itself, the phrase does not include the outright denial of a permit application within the one-year deadline. We have also considered the phrase in the context of the entire statutory provision in which it appears. A reading of the entire provision reveals that Congress intended to act in a measured way and conferred authority on FERC only when a state commission is unable to act on a permit application in a national interest corridor, fails to act in a timely manner, or acts inappropriately by granting a permit with project-killing conditions. The broader context of § 216(b) thus confirms that the meaning of "withheld approval for more than 1 year" is plain: it means that action on a permit application has been held back continuously for more than one year. The continuous act of withholding approval does not include the final administrative act of denying a permit. Because Congress's intent is clear, our review under Chevron proceeds no further. For these reasons, we reverse FERC's interpretation of the phrase "withheld approval for more than 1 year."
NARUC has continued its opposition to federal preemption of state jurisdiction to site and permit transmission projects.

And then DOE inappropriately attempted to utilize Section 1222 to usurp state authority to site transmission projects.  It's Groundhog Day all over again!  And finally NARUC proposed a resolution to "...take all necessary actions to confirm NARUC’s position regarding Sections 1221 and 1222 and/or challenge, if necessary, DOE’s circumvention of State siting laws in the pursuit of projects pursuant to Section 1222 of the Energy Policy Act of 2005."
And then "confusion" happened.  E&E News inaccurately reports:
A group of state electric utility regulators tabled a resolution critical of the Department of Energy's plan to take an ownership stake in a 720-mile interstate transmission project from the Oklahoma Panhandle to Tennessee.

The galvanizing issue for some NARUC members is DOE's unprecedented use of its authority to take an ownership stake in a line under Section 1222 of the Energy Policy Act of 2005.
That's not the issue at all.  Section 1222 plainly allows DOE to "own" a transmission project.  What it does not allow is DOE preemption of state siting authority.  That was clearly the galvanizing issue for NARUC as expressed in the proposed Resolution.

What else did E&E get wrong in their opinionated "news" story?
The Plains and Eastern line is ranked No. 9 in a list of 50 high-priority infrastructure projects circulating among governors, lawmakers and the business lobby. And the line could become a topic of debate if Congress and the White House develop economic stimulus legislation aimed at infrastructure development.

The 50-project document touted the line as a "national security project that can add resiliency to our electric grid," citing its ability to "move cheap, clean, wind power energy" that could power more than 1 million homes in the mid-South.
Oh, the lobbyist list?  That has nothing to do with actual need for projects and is nothing more than a business lobbyist wet dream.  Being on the list means nothing in the grand scheme of things.  Especially because this "high-priority infrastructure list" seems to be purposed to score government funding for projects.  News flash!  We don't use taxpayer funds to build electric transmission.  Electric transmission has always been "user pays."  That's because electric transmission has distinct beneficiaries -- a project benefits only a subset of consumers.  How could the government justify using the collective pot of taxpayer money funded by all citizens to provide a "benefit" to just one state or region?  What about the other regions?  Will they be getting government-funded transmission projects that benefit them as well?  And how about those profits?  Transmission lines produce revenue for their owners.  Who would receive the revenue from a government-funded transmission project?  In the case of other infrastructure, the government owns the not-for-profit infrastructure and any profits belong to the people.  Why would the federal government use taxpayer money to fund a privately-owned infrastructure project that pays huge dividends to its owners?  The government isn't going to buy me a small business and let me keep all the profits from its operation.  But that's just what the DOE has done with its proposed "ownership" of the Clean Line project.  Clean Line funds it, the government "owns" it, and Clean Line keeps all the profits from its operation (well, except for that 2% DOE squeaked out of the project in its Participation Agreement).  Quid pro quo?  Section 1222 doesn't even contemplate, much less allow, the DOE to profit from "ownership" of a third-party transmission project.  And then let's talk about how Clean Line's rates would be affected by a sudden government investment in its project.  Clean Line has negotiated rate authority from FERC.  In essence, it allows Clean Line to negotiate rates with voluntary customers.  It requires that Clean Line accept all financial risk of its market-based project.  But if Clean Line's project is funded by taxpayers under the guise of "infrastructure development" then the risk clearly shifts to taxpayers and Clean Line no longer qualifies for negotiated rate authority.  If the government is going to "own" the project and fund its construction, then what's the purpose of Clean Line?  It would be acting in the capacity of government contractor, with its payday being 98% of the revenue generated by the project... forever.  I'm pretty sure the government could find a much more capable contractor, since Clean Line has never built or owned any transmission before.  Shoot... I'm pretty sure the experienced incumbent transmission owners would be lining up for an opportunity like that!  And even when transmission is owned by the government, such as transmission owned by federal power marketers WAPA and SWPA, the users of the transmission pay for it in their electric bills.  WAPA and SWPA do not take any operating funds from the U.S. Treasury.  They are supposed to be self-supporting governmental entities.

So, listen, any governmental "infrastructure" funds would change Clean Line's projects so significantly that they would never happen.  Clean Line needs to quit posturing about the lobbyist list and governmental financial support.

But, hey hey, the lobbyist list called Clean Line's project "a national security project."  Who determined that?  The lobbyist who created the list?  No official entity tasked with national security has determined that Clean Line's project is needed for national security.  In fact, Clean Line's project is a national security risk.  It could provide just one more vulnerable target in our complicated transmission system.  Adding more transmission doesn't make the system safer, since it's generally known that the transmission system has a handful of "critical" assets that could collapse the grid if destroyed.   New additions simply provide another entry point for our enemies.  Just ask the U.S. military, who has been islanding itself from the larger grid through development of distributed generation assets.  Local assets it can protect and control are safer than depending on some huge, unprotected system for the energy the military needs to protect the country.

And what did Clean Line have to say about NARUC's resolution?
Mario Hurtado, executive vice president at Clean Line who leads the Plains and Eastern Clean Line project, welcomed the NARUC decision.

"Resolutions in a collegial body like this are supposed to be noncontroversial," he said.

"It's not really the role of NARUC to decide on projects. I think a lot of the commissioners were not comfortable passing judgement on single project in this informal association that's supposed be about broad policy," Hurtado said.

"To now to try to relitigate things is sort of like you're trying to start the clock again, and that's not really fair for investors," he said.
What?  NARUC can never take a position that the industry disagrees with?  Surely you jest, Mario.  NARUC derives its strength from taking positions on important issues.  Mario is not a member of NARUC because he's not a regulatory utility commissioner, therefore he has no authority to determine the veracity of NARUC issues.  As has been explained here, NARUC wasn't attempting to decide on a single project.  NARUC was taking a position in a policy issue - DOE's misinterpretation of Section 1222.  Mario seems to think it's all about him.  Maybe Mario needs to see a psychologist about that?

Relitigate?  What?  Was NARUC litigating this issue at its conference?  NARUC doesn't litigate issues.  It is not a court.  And how can one "relitigate" something that has never been "litigated" in the first place?  Section 1222 has only recently come under court scrutiny in litigation initiated by Golden Bridge LLC, a landowners group in Arkansas.  The litigation of Sec. 1222 has only just begun and is certainly no where near being settled.  That's "litigation," Mario -- the process of taking legal action.  Legal actions only happen in courts.  The Court will interpret the plain language in Section 1222 to determine if it reserves siting to the states.

Was Mario referring to legislation, not litigation?  There's a world of difference.  Legislation is the making or enacting of laws.  It is undertaken by elected legislators, and in the case of Section 1222, the legislators who made and enacted it are Congress.  So, let's apply Mario's whining to the word "legislation."  Mario thinks that Congress can never revisit legislation it enacts because that wouldn't be fair to filthy rich investors who are counting on the enacted legislation to make even more money.  How does that square with Clean Line's negotiated rate authority where its investors accepted all market risk for Clean Line's projects?  Risk involves the acceptance that situations can change at any time, such as laws being amended.  Clean Line accepted that risk when it chose to proceed as a merchant transmission owner, so it needs to shut its pie hole.  Risky business propositions can provide huge rewards, oftentimes the higher the risk, the greater the potential reward.  But risk means things can change.

And let's back up a bit here... E&E suggested:
...the line could become a topic of debate if Congress and the White House develop economic stimulus legislation aimed at infrastructure development.
So while Clean Line whines about changing the rules in  the middle of the game as support for maintaining existing laws, it also wants to write new laws to support its project.  Government funding isn't the half of it.  Clean Line also wants Congress to enact new legislation to preempt state siting and permitting for transmission projects.  It wants Congress to strengthen feeble "backstop" siting provisions that currently exist in Sections 1221 and 1222.  It wants federal eminent domain authority to preempt any state role in the permitting and siting of transmission.  That sort of sounds like changing the rules in the middle of the game to me.  If Clean Line was so confident in Sec. 1222's ability to preempt state siting laws, then it would have no need to attempt to strengthen it. 

Who's a hypocrite, Clean Line?

And let's take a moment here to reflect on Clean Line's use of Section 1222 in the first place.  Clean Line says that it explored the use of Sec. 1222 because Arkansas denied them a permit for their project.  Except that's not what really happened.  Arkansas said it did not have authority to grant utility status to an entity that did not intend to serve customers in Arkansas.  When Clean Line applied for utility status in Arkansas, it proposed to simply "fly over" the state without making any capacity available to Arkansans.  Clean Line applied for Sec. 1222 BEFORE the Arkansas PSC had even made a ruling on its state application.  Clean Line was clearly proceeding with federal preemption before Arkansas even had a chance to make a ruling.  And then Clean Line added an Arkansas converter station after the Arkansas PSC ruling and said it intended to serve customers in Arkansas.  But did Clean Line ever go back before the APSC with its changed plan to serve customers in Arkansas?  No.  It simply proceeded on a long and expensive path to preempt Arkansas authority altogether.  Arkansas was never given the opportunity to site and permit Clean Line's project.  It was simply preempted from acting.

And, let's cut to the chase (finally, they say!):
For Iowa's Jacobs, the siting issue is getting greater attention by regulators as "the citizens and the consumers are getting more and more involved in major infrastructure projects that deal with energy."

"Consumers would not feel comfortable that the federal government is making a decision that could impact them within miles of their home," she said. "We're hearing it more and more."

The trend in opposition "gives play to the old adage that all politics is local. That's really where we are right now. That whole populist sentiment is really strong out there," Jacobs said.
That's you, Americans.  You've been standing up and getting involved in energy projects that affect your community.  You don't want decisions about energy projects in your community made in a Washington political swamp that has turned a deaf ear to the needs of average Americans.  Business as usual is over.

No matter how much political posturing Clean Line does (first they were great Democrats, and now they're trying to be great Republicans), decisions about individual projects at the state level aren't supposed to be political.  They're only political at a federal level.  And how would a Republican Congress think about an energy project owned by Democratic party funders?  Would a Republican Congress steamroll a path for a project that would provide staunch Democrats with even more money to spend opposing Republican candidates?  If Clean Line wants this to be political, let's get political!

But meanwhile, your cupcake isn't ready for consumption yet, America.
Jennifer Murphy, NARUC's assistant general counsel, emphasized that the tabled resolution does not negate the organization's opposition to even limited "backstop" siting authority granted to the Federal Energy Regulatory Commission, also in the Energy Policy Act of 2005.

"We have a resolution from 2009 that states our position on backstop siting. And until we have another resolution about backstop siting, that's our position on backstop siting," Murphy said.
It's back to the bakery for NARUC.  And while NARUC's actions are on behalf of the Association, they do not prevent any individual state from litigating this important issue.  Strong feelings will foment strong actions.  The best is yet to come!
7 Comments

Clean Line Making its Ego GREAT again!

2/14/2017

5 Comments

 
We're going to build huge transmission lines!  It's going to be great!  It's going to be the greatest transmission build ever!  And we're going to make the American people pay for it in their monthly electric bills!  It's going to be GREAT!
Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said.
Oh, puh-leeze.  Transmission is already great in this country.  In fact, we have federally regulated transmission planning and reliability organizations that plan and operate the greatest transmission system in the world.  These organizations carefully monitor our transmission system to ensure that it serves electric consumers reliably, economically, and meets public policy mandates.  It's already GREAT!

And the planning and reliability organizations have never found a need for thousands of miles of expensive, invasive "clean" lines.  That's why Clean Line Energy Partners is a merchant transmission company, proposing to build new transmission outside our regulated system and shoulder all the financial risk that nobody may find its lines useful, economic, or necessary to purchase.  We don't need Clean Line to "make transmission great again."  Our transmission system never stopped being great, but if it did, regulated planners would propose additions to the system to ensure it remained great.

But Clean Line needs our regulated transmission system to make itself great.  It needs volunteer customers to provide a revenue stream that would make its proposal profitable for its filthy rich investors.  And when that did not happen voluntarily, Clean Line now seeks to use the federal government to force electric customers into captivity to finance its projects.

Clean Line and its environmental sycophants, along with transmission industry profiteers, gathered together last week to scheme up a way to force legislators and governmental regulators to usurp state authority to site and permit new transmission projects.  And hilarity ensued.

Considering that there was only one news report of the event, and the front group that organized it didn't bother with social media engagement, it more closely resembled a closed echo chamber that nobody cares about.  So even though Clean Line president Michael Skelly shamelessly sucked up to the political party in power, nothing of any import happened.  Except I laughed!

Conference organizer "Americans for a Clean Energy Grid" has been trying to make itself relevant for years, but their execution is lame and conference attendees may randomly crap on all their ideas.
The organization, an initiative of the Energy Future Coalition, has held regional transmission conferences, but this was its first national event.

The coalition was formed in 2002 by former Sen. Tim Wirth, a Colorado Democrat; Republican C. Boyden Gray, who served as White House counsel to President George H.W. Bush; and Democrat John Podesta, a former aide to Presidents Bill Clinton and Barack Obama who chaired Hillary Clinton’s 2016 presidential campaign.
So this is really a political organization trying to masquerade as an industry or regulatory organization.  And even when they can manage to get important sounding participants to show up, the participants may not share the organization's rabid support for building new transmission outside current regulated planning processes.
“I’d love to have more load growth. It ain’t going to happen,” Craig Glazer, PJM’s vice president for federal government policy, told the gathering.

Weak load growth will make it more complicated to finance upgrades for aging transmission, and the lack of a federal carbon tax or renewable mandate is making it difficult to integrate renewable generation, Glazer said.
Gosh, that really doesn't sound like a glowing endorsement for building new merchant transmission to serve PJM consumers, which seems to be Clean Line's target market.

And when the organization's dream of taking away state authority to site and permit transmission was brought up:
Hoecker and Brown discussed FERC’s inability to gain “backstop” siting authority, saying it’s still very difficult to prevent individual states from blocking a project. The Energy Policy Act of 2015 amended the Federal Power Act to give FERC the authority to site electric transmission lines blocked by states, but court rulings have blocked the commission’s attempts to use it, prompting some in Congress to propose additional legislation strengthening FERC’s authority.

Brown said that Order 1000 hasn’t really helped SPP much with large regional projects.

“We need to decide what we want this grid of the future to look like,” Glazer said. For example, should it be a “localized grid” that can harness distributed generation? he asked. “There’s an added complication; it’s not even clear who is in charge,” Glazer said. FERC, state utility commissions and governors all have a say in siting decisions, he said.

If each governor is asked what infrastructure projects they want, the country will end up with a lot of state-based projects, not interstate ones, Clean Line Energy Partners President Mike Skelly said.

Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said. The power to select infrastructure projects should not be taken away from transmission planners and placed in the hands of Congress, he said.

Skelly and others cautioned the Trump administration not to skimp on project reviews or stakeholder input. The key is that all projects must have “timelines” for regulatory approvals to avoid infinite delays, he said.

The executive director of the AFL-CIO’s Industrial Union Council, Brad Markell, said the labor movement agrees with the need for “hard timelines” to shorten the permit process.

Markell said that labor unions have been in contact with the Trump administration on potential infrastructure efforts.

“From our point of view, more power for the federal government and less power for the states [on electric infrastructure] would be a good thing,” he said.

Others deemed that unlikely. “I think we’re stuck with the system we have,” Glazer said.
But, wait a tick, the Skelly chameleon has actually participated in a federal process that skimped on technical project review and stakeholder input in order to usurp state siting authority for one of his "clean lines."  It seems to me that this is a top-down approach to forcing regulatory approval, instead of a fair and open review of proposed projects.

And then the environmental groups weighed in and things got a lot sillier.
Mary Anne Hitt, executive director of the Sierra Club’s Beyond Coal campaign, said that — contrary to what conference participants may have heard — her organization doesn’t oppose all power lines, only those that appear aimed to “prop up fossil fuels.”

The environmental group opposed the abandoned “coal by wire” Potomac-Appalachian Transmission Highline (PATH) project in PJM. On the other hand, it has backed the Plains and Eastern Clean Line Project, designed to move renewable energy from Oklahoma to Tennessee.

Hitt said she was concerned that President Trump’s nominee for EPA administrator, Scott Pruitt, opposed Clean Line in 2015 as Oklahoma attorney general.
Right... the Sierra Club should be the sole adjudicator of whether transmission projects "appear aimed to prop up fossil fuels."  And this subjective determination can really filter out bad projects.... I guess she doesn't know that her favorite Clean Line projects are being marketed as an arbitrage opportunity to ship fossil fueled electricity between regions, and that "clean" lines can't actually exist because all transmission is open access regardless of fuel source.  I guess that's what happens when you have a bunch of environmentalists meddling in things they don't really understand.

And an ineffectual time was had by all.  But, hey, the political posturing was exquisite!

And speaking of political posturing, here's some political posturing from E&E News regarding a real Washington, D.C., organizational conference with clout - the National Association of Regulatory Utility Commissioners winter meeting.  The members of this organization actually regulate utilities, they don't just talk about it.  E&E complains:
Curiously, there are no sessions scheduled there addressing the unsettled question of whether the federal government has any legitimate interest in transmission siting.
That's probably because this question is NOT "unsettled."  It's quite settled.  It's been settled for years.  Decades.  States have jurisdiction over electric transmission permitting and siting.  The federal Energy Policy Act of 2005 attempted to shift permitting to the Federal Energy Regulatory Commission if a state failed to act within one year on a permit for a project in a federally designated "national interest electric transmission corridor.  That has never happened, so who's to say its ineffective?  What was ineffective was a misinterpretation of this statute (Sec. 1221) that ended in a couple of hugely expensive federal court battles.  The EP Act also allows the U.S. DOE to "participate" in transmission projects financed by third parties, but reserves siting authority to the states.  Again, misinterpretation of the statute by the government has resulted in a federal court battle, still in progress.

This "question" isn't unsettled.  It's written in black and white.  But for those who want to misuse statute, it becomes an "unsettled question" kicked into federal court.  Just because an entity doesn't like the law does not make the law open to interpretation.  The law does not allow the federal government any authority over,  or interest in, transmission siting.  Transmission siting is state jurisdictional.

While it's oftentimes hard to tell a useful and influential Washington conference from a useless and ineffectual one, remember that not all Washington gatherings have the same amount of clout.
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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.

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