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FirstEnergy Open House Fail

1/28/2019

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The people of Aurora, Ohio, were ready for FirstEnergy last week, and it looks like its "Open House" effort to charm and pull the wool over everyone's eyes was a complete failure.  FirstEnergy may have counted on light attendance to overwhelm and baffle its critics.  Instead, it got this:
Hundreds packed a public open house convened by FirstEnergy Monday night to reveal plans for the Northern Portage Reliability Project.

The big room at Christ Community Chapel was built to hold 350 and it was so packed that people were turned away within the first half-hour of what was to be a two-hour event.
As the open house began at 6 p.m., traffic was backed up for almost half a mile between the chapel just off Ohio 306 and Ohio 82 to the south.

FirstEnergy employees, contractors and consultants staffed themed tables around the periphery of the room. They included stations entitled Engineering & Construction, Vegetation Management, Environmental, Real Estate and Route Selection. The company created a large centerpiece with big photos on easels showing various points where the company wants to put in power lines. The event was designed for people to circulate, but the crowd made navigation around the room difficult. Some attendees complained that there was no public give-and-take between the company and residents as one might have at a town-hall style event.
Oh no!  People turned away, you say?  Guess you'll have to be punished with more dog & pony shows, FirstEnergy.  Punishment?  But of course!  The pictures tell the tale, and they look just like every other set of news photos of a transmission line "Open House."  Shocked and angry landowners glaring aggressively, transmission company employees making animated faces and hand gestures as they try mightily to make their lies believable.  Aurora clearly wasn't buying FirstEnergy's story.

And why should they, when FirstEnergy is clearly making crap up as they go along.  Why else would there be two different takes on burial costs?
According to FirstEnergy, the cost to run the lines underground along the rail corridor would be three to seven times more expensive than using utility poles.
Or
First Energy has said the underground scenario could create a 10-fold increase in the cost of the project and the above-ground rerouting would be longer that the former rail line, and would send the lines over roadways and home owners’ yards.
Pop quiz!  How  much does it really cost to bury transmission lines?

    Underground Transmission Line Cost Pop Quiz

Take a Guess!
Who could believe anything FirstEnergy says?  It's obvious that depending on who you ask, you're likely to get a different answer.  And some of the answers are conflicting, such as this one:
Jennifer Young, a spokeswoman for the company, said the lines will be carried by 60-foot wood poles and those might be reduced to 45 footers, making them lower than nearby trees.
You mean the height of transmission lines is a purely elective thing?  I thought safety standards dictated clearances to the ground.  If the lines are as safe at 45 feet as they are at 60, why in the world would you have ever planned to build them at 60 feet?  60 foot towers are probably more expensive  and maybe more obtrusive, and definitely more objectionable.  Why would you do that unless it was a safety requirement?  I simply don't believe you that the height of the line "might be" reduced to 45 feet.  The only thing that could reduce the height of your project would be if you eliminated a proposed double circuit that would have required additional height clearances, and where would FirstEnergy be with its redundancy and reliability claims if it built a double circuited line?  This is obviously an empty promise.

I wonder who the genius was who came up with this idea: 
Beach said FirstEnergy measures the viability of various routes by their potential impact on property owners. The western route could affect 111 homeowners (although the company would need right-of-way access from about half that number), and the eastern route could affect up to 177 homeowners with right-of-way access from half that number. He also said many of those properties would have utility poles going up in the front of their properties.

“We have the opportunity to build this and maintain it in the right-of-way with one parcel that’s 100 feet wide for the most part,” said Beach.
And said "opportunity" runs along the back side of residential property.  So, where would you rather have a transmission line on your property, Aurora?  Your backyard or your front yard?  Nothing like stuffing a few strawmen for public execution, is there, FirstEnergy?  How about neither yard?  How about FirstEnergy buries it, or better yet doesn't build it at all?  I did not notice those options on the table.  Of course not, FirstEnergy's game is rigged to allow the company to win (build a transmission line) every time!

Aurora Mayor Ann Womer Benjamin takes on FirstEnergy's lies in this video.  This lovely lady seems knowledgeable, calm, and entrenched to resist.  And there's no more formidable opponent than a determined lady of a certain age, is there, FirstEnergy?  You might as well just give up now and cut your losses.
Unfortunately, you've got to sit through a FirstEnergy crapfest where Bill Beach shoots the strawmen before Womer Benjamin appears, but it's worth waiting for.
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FERC Orders PATH To Make More Refunds

1/18/2019

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What happens when a transmission company can't keep track of its own finances?  FERC to the rescue!  In the wake of FERC's Opinion No. 554 ordering PATH to refund all of its advertising, civic and political costs at issue in the formal challenge proceeding, PATH was ordered to make a compliance filing and refund report.  Except what PATH filed was incomprehensible gibberish.  FERC has tried valiantly to make sense out of it ever since.  PATH made additional compliance filings to correct previous errors which created nothing more than a huge quagmire of inconsistency.  That's pretty much standard procedure for PATH's accounting.  *I'm not sure these people know what they're doing!*
But FERC did not give up and run exasperated and screaming from the room.  I appreciate that.  FERC says
We find discrepancies between the General Advertising amounts reclassified by PATH in its Compliance Filings compared to the General Advertising amounts the Commission required PATH to reclassify in Opinion No. 554.

On compliance, PATH must eliminate all General Advertising costs from its recoverable amounts, or else specifically justify each item in light of Opinion No. 554.  In making the compliance filing, PATH must provide the journal entries to reflect the adjustments, and workpapers necessary to explain the accounting corrections for that FERC Form No. 1 input that references back to the journal entries; and the revised/corrected draft Form No. 1 inputs.
FERC has found further errors on PATH's part and ordered them corrected.  Let's put an end to this quagmire and drain the PATH swamp!

Meanwhile, PATH wants the Commission to approve its request to liquidate the $70M of profit PATH has accumulated and give it to the parent companies, FirstEnergy and AEP.  $70M!  For a transmission line project that never put a shovel in the ground.  That's quite a participation trophy!

But first, the Commission needs PATH to make a COMPLIANCE FILING detailing its post-Opinion No. 554 land sales.
Did you make a compliance filing, PATH?

No!  We don't need to!  We made an informational filing!

Are you sure you don't need to make a compliance filing, PATH?

No!  FERC meant an informational filing, not a compliance filing!

Where's our $70M?

It would almost be funny, if it wasn't so costly to ratepayers.

PATH has 30 days to make the compliance filing it should have made after its land auctions, and 30-days to make its compliance filing on the removal of advertising costs.  PATH has 60 days to make its refund report.  PATH was also ordered to wrap up its business at the Commission.  Won't we all be happy when PATH quits sliding its claws into our ratepayer wallets?  As much as I look forward to the twice yearly phone gab fests, I would like to see this done.  It's time to move on!
PATH must submit a compliance filing with the Commission describing either:  (1) its plan for ending its operations and a timeline for when it intends to file a notice of cancellation of its transmission formula rates, or (2) the type of “transmission or sale of electric energy” that requires its rates to stay in effect.  We direct PATH to submit this compliance filing within 30 days of the date of this order.  To the extent that PATH intends to unwind, PATH must make the appropriate filings under FPA section 205, as necessary, to implement this action.  PATH shall notify the Commission within 10 days of the date that the closing out of business is complete.
Can we get a hallelujah, brothers and sisters?

Except there's this... "Interested parties may “file comments on PATH’s compliance filing 30 days from the date PATH makes its compliance filing.”

And this...

"We note that PATH’s refund obligations may change as a result of further Commission orders in this proceeding."

Can PATH find its way out of the FERC maze and collect its $70M?  Or will FERC snatch it out of their hands before they get to the exit?  Stay tuned... 
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Ohio City Plans Eminent Domain To Prevent New Transmission Line

1/18/2019

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In the Just Desserts category, the City of Aurora, Ohio, says it is pursuing legal action to acquire abandoned railroad right of way that FirstEnergy says it has under contract as the location of a new transmission line through Aurora.

The people of Aurora, and its mayor, have proposed alternatives to the building of the transmission line on an abandoned rail line through the city.  FirstEnergy isn't listening.  In fact, the company will be holding one of its famous dog and pony shows, "where it will seek public input about the proposed routes and the siting process" next week.  Why bother with one of those stilted "open house" displays, FirstEnergy?  The city has said "no."  It's not going to change its mind.  Aurora wants to use the abandoned railway for a recreational path.  In addition, there are 500 homes that will be affected by proximity to the proposed project whose owners won't be compensated at all for the drop in their property values.

What happens at a FirstEnergy "open house?"  Attendees are greeted and shuffled through a series of "stations" where they can ogle a series of display posters with general information, ending at a table of aerial maps where residents can see how close the project will be to the place they call home.  Citizens will be asked to fill out a little card asking which FirstEnergy designed route segments they prefer.  The idea is that people will pick the route farthest away from their property, and the route with the least objections "wins."  Well, not really, FirstEnergy wins!  FirstEnergy wins at this game every time because they get to build a new transmission line.  It's never about whether to build, only where to put it.  However, people aren't programmed to meekly accept a new transmission project as an inevitable fait accompli.  Oh, no, they want to examine whether or not it should be built in the first place.

And on that point FirstEnergy is failing miserably.  FirstEnergy says,
FirstEnergy is planning to construct a new 69-kilovolt transmission line to connect two substations in the Aurora area.  This new line will improve system redundancy and reliability, allowing much faster restoration times should power outages occur like those in recent years.
Did Aurora's transmission system fail a lot recently?  I doubt it.  It was more likely the distribution system.  The transmission system connects generation to substations, and between substations.  Substations step down the power before sending it out on distribution lines to your home or business.  Almost all storm related outages take place on the distribution system.  Transmission line failures are rare.  Bigger lines, bigger rights of way, better right of way maintenance.  So what good is another transmission line between substations when your outage is on the distribution system?  More transmission lines are not the "fix" for power outages.  FirstEnergy is only trying to scare the stupid to support its project.

FirstEnergy also reportedly told Aurora that it will have to pay $5 to 15M more to have the line buried.  But if the line is solely for Aurora's benefit, isn't Aurora going to pay the entire cost of the project anyhow in their electric rates?  It's probably not just for Aurora... and besides, FirstEnergy's estimate is probably as much a paper tiger as its outage scare tactics.  FirstEnergy and other utilities routinely opine that buried transmission costs "ten times" as much as overhead.  That figure has been proven overinflated on numerous projects.  A more realistic rule of thumb would be two times as expensive.  So if ten times is $5M, two times would be $1M.  There, doesn't sound so scary anymore, does it?  Whoever benefits from the transmission line is supposed to be the one who pays for it, and whoever benefits from the transmission line should also share in the cost of its burial to ameliorate its burden on Aurora and adjacent landowners.

FirstEnergy is looking at a hornet's nest on Monday.  Hope they go all out and add a bee smoker station to their display.  They're gonna need it.
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Public Hearing on Transource Rebuild

10/22/2018

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The Transource IEC project requires upgrades to other regional transmission lines.  On the eastern half of the project, it's a rebuild of a BG&E line.  On its western half, the project will require the rebuilding of an existing 138kV transmission line owned by our friends at Potomac Edison (or Perpetual Estimate, if you still haven't forgotten the billing debacle of 2013).

The proposed rebuild and enlargement of this existing transmission line to 230kV runs from Potomac Edison's Ringgold substation in Smithsburg, MD to its Catoctin substation in Thurmont.  Landowners along this corridor may see taller towers and experience land disturbance.

The public hearings are for the public.  If this concerns you, show up and let the Maryland Public Service Commission hear your thoughts.

Tuesday, October 30, 2018 at 7 p.m. – Ramada Plaza by Wyndham (Cumberland Room), 1718 Underpass Way, Hagerstown, Md.

Thursday, November 1, 2018 at 7 p.m. – Thurmont Regional Library, 76 East Moser Road, Thurmont, Md.

If you missed the Open House presentations earlier this year, you can take a look at the project application here:

Smithsburg Library, 66 West Water Street, Smithsburg, Md., and at the Thurmont Regional Library, 76 East Moser Street, Thurmont, Md.  Just ask the librarian to see the application.  I'm sure they've got it packed away in a box under a table (or maybe holding up the table, depending on how well your local library is funded) somewhere.

Additionally, here's a link to the company's webpage about the project.  It has a map.

In the news, FirstEnergy spokestoad Todd Meyers says,

“The Maryland Public Service Commission will hold the hearings on our application (Potomac Edison) for a Certificate of Public Convenience and Necessity to modify the transmission line from the existing 138 thousand kV transmission line to a 230 thousand  kV transmission line,” said Todd Meyers, Potomac Edison spokesman.  “There’s a possibility that another much larger transmission that is under consideration, and I don’t know that exact route, and it has two pieces.  And one of the pieces, the more westerly piece runs from an area in Franklin County and it would run down into our Catoctin substation, which is in Smithsburg.”
Ahhh.... Toad, I see you still haven't lost your magic.  You can still trip over your own... tongue... while trying to deliver your company's messages.

Here's a map for the Transource IEC project.
Picture
It is indeed in two parts.  And it runs somewhere.  Congratulations!  Maybe next Toad can learn all about what "kV" stands for.  It stands for kilovolts, a unit of electromotive force, equal to 1000 volts.  So, a transmission line that's 230 thousand kilovolts is... wait, let me get my calculator...  *KABLAMMMMM*

Oh, Toad, you've still got it!  In fact, the Transource opposition wanted to speak to you in song:

Hahahahahaha!
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First in Failure!

4/2/2018

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Oh, so your merchant generation affiliate went bankrupt, First Energy?

Hahahahahahahahahahahahahahaaaa!
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NJ Judge Denies FirstEnergy Transmission Plan

3/9/2018

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Congratulations, RAGE!  You did it!

Residents Against Giant Electric (RAGE) formed several years ago to fight FirstEnergy affiliate Jersey Central Power & Light's insane plan to construct a 10-mile, 230kV transmission line in a narrow commuter railroad right of way abutting dense residential development in Monmouth County.  As the judge recognized in her decision handed down yesterday, "RAGE took up the predominant oar in mounting the opposition to the MCRP, understandably, in light of the fact that the Project is in the back yards of its members."  This victory is yours, RAGErs!  The citizens group was incredibly well-organized and managed and its members worked incredibly hard toward denial.  The effort put forth was nothing less than stellar, but effort alone cannot always guarantee victory.  RAGE also worked an incredible strategic game and left no stone unturned, no task undone, and no decision left to chance.  They worked this case in an aggressive, take no prisoners fashion.  They assured their own victory.  Bravo, RAGE, well done!

JCP&L's response to having their ass handed to them whined:
"We strongly disagree that JCP&L failed to prove the need for the Monmouth County Reliability Project," the utility said. "The initial decision contradicts the findings made by the regional grid operator and industry experts."
Clearly, the judge did not feel that the regional grid operator and "industry experts" were credible.  Is that going to be JCP&L's thing on exceptions to the BPU?  That the judge who spent hours and hours evaluating testimony and exhibits failed to recognize the superiority of utility arguments?  That the BPU should disregard her "in the trenches" view of the case and substitute their own judgment of whether or not JCP&L met their burden?  That is truly unlikely.  Judge Cookson was very thorough, carefully evaluated the evidence, and made a reasoned decision.  JCP&L couldn't even point to an error she made, it simply whined that it didn't win.

PJM was not credible.  RAGE presented evidence that JCP&L had begun working on this project, and its preferred route, months before PJM even found a "problem" for it to fix.
I FIND that the preponderance of credible evidence proves that JCP&L commenced studies to justify the MCRP as its preferred route months before any “problem” was even identified as needing a solution.
PJM and its utility members suffer from a serious case of chicken/egg.  This isn't the first time a utility came up with a solution for a problem that PJM had not identified and then used PJM's planning process as a "vehicle" to advance a utility plan by finding a "problem" for it to fix.

Judge Cookson also recognized that failure to kowtow to PJM as an omnipotent grid planning oracle who must be obeyed isn't really a big deal at all.
During the hearings, PJM concurred that JCP&L will not suffer any financial penalties if the Board rejects the MCRP. Both PJM and JCP&L agree that if the MCRP is not approved, they will return to the planning stage and find another way to solve the P7 contingency.
Bravo!  This is the first time a state has recognized that denial of a PJM transmission proposal won't make the lights go out.  Such a simple thing, buried under mounds of rhetoric and projections of doom and gloom.
New Jersey can be a shining example in recognizing that states have the ultimate say in whether or not a RTO planned transmission project is constructed.  Instead of cowering and simply accepting regional grid plans as beyond question, states can say "no."  A regional grid authority was never intended to be the final arbiter of transmission plans.  If it were, there would be no purpose to state transmission permitting authority.  States need to stop acting like a rubber stamp and assert their authority under the law.

The judge also questioned the veracity of every RTO and utility's favorite word, "robust."  Personally, I hate that word.  It means nothing.
There were four alternative 230 kV lines into Red Bank on the narrowed list but apparently no technical studies were undertaken of them because they were considered by JCP&L to lack the appropriate level of “robustness.” Palermo could not find any definition for that term and was unfamiliar with its use generally in the transmission industry.
Let that term go back to the world of salad dressings.
Picture
Now let's talk about those "industry experts" JCP&L wants us to believe.  Because I knew the outcome of this Order before I read it, I didn't have to skip to the ordering paragraphs first.  I was able to start at the beginning and read through the synopsis of the evidence before getting to the judge's conclusions.  There was some pretty ominous foreshadowing in the way the judge presented her statement of the evidence.  And once I got to the findings, there were no surprises.  As far as JCP&L's "expert," who found no effect on property values, the judge opined:
Applying these standards, I FIND that Dr. Moliver’s expert opinion is entitled to greater weight than that of McHale. I FIND that McHale’s credibility was undermined by his careless quotation of synopses of studies he never read. He utilized a general search engine that returned results for terms “effect of HVTL at 15 ft” and followed a link to a New Hampshire Siting Commission webpage, copied the summaries, and deleted the attribution footer from his reprint. As reluctant as I am to express this, in my opinion, such “scholarship” by a student would produce an “F” and subject one to claims of plagiarism. It is certainly not the work product of a professional entitled to much weight to count the number of supportive studies versus the number of unsupportive studies without regard for the study criteria and quality. The merits, depths, sampling size, and commonality must be taken into account before a study can be cited as persuasive to a novel setting. I also FIND that his opinion as an expert witness was blended with several lay perceptions that fell outside the scope of his presentation for the Company and were unverified.
The utilities need to quit using this guy.  It sure appears that he put little effort into his testimony, but yet he most likely billed the utility thousands for his "work."  Because utilities believe their expert's opinions are beyond question, apparently some of the "experts" believe likewise.  JCP&L should ask for its money back.  Of course, it's not really JCP&L's money... they paid this guy with funds they will recover from ratepayers.

While the judge did not make a finding on the EMF issue, I got the distinct impression that maybe she believed that the industry has influenced science and that "experts" like Dr. Bailey make a tidy living being utility "experts" and making the same denials over and over.  Perhaps Bailey made a grave error by trying to make the opponent's witness look like a quack.  The judge mentioned that she didn't find him "eccentric" at all.  All those delicious ad hominem utility arguments tossed out to avoid any real debate of the EMF issue... wasted!

The best expert witness overall was clearly RAGE electrical engineer Jeffrey Palermo.  It's obvious that he developed an early rapport with the judge that the other engineering witnesses just couldn't touch.  The technical aspects of electric transmission are extremely difficult for laypeople.  Utility witnesses are usually more about complicating things with unfamiliar words and technical terms in an effort to make the judge give up and simply just trust his opinion because they can't put everything together to devise their own.  From reading this decision, I surmise that Palermo approached it differently and was able to explain the technicalities in a way the judge could understand and equip her to make an informed decision on the technical merits of "need."  He also presented a workable alternative that could be much cheaper and less invasive to the community.  And he clearly explained this alternative to the judge, who adopted it as a possible future solution.  Well done!

JCP&L needs to take a look at its own failed regulatory strategy at this point.  It didn't work on this judge.  She saw right through it all.
The evaluation directed by JCP&L was both pre-emptive in the timeline of the “need” for the Project and created an unlevel playing field tipped in its obvious favor. This is not a close case of general public interest versus parochial interest, with a tie going to the public utility company. I CONCLUDE that JCP&L’s application for municipal waivers pursuant to N.J.S.A. 40:55D-19 must be denied because the Company has not supported its application by the preponderance of the relevant and admissible evidence. The MCRP is not a safe or reasonable response to the potential P7 violation.
Any transmission opposition group that seeks to have a transmission regulatory application denied has to show up and play ball.  RAGE played hard, but more importantly it played smart.  It gave the judge the tools to deny this application.

But the regulatory process isn't the only game transmission opponents need to play.  Public opinion and politics also play a huge role in driving a denial.  RAGE rocked this game as well.  In her summary of the public hearings, the judge remarked:
The prepared summary of written statements indicates that eighty-three (83%) percent were opposed to the MCRP; and, seventeen (17%) percent in favor. Approximately twenty-five (25%) percent of the statements opposing the Project were form letters; and ninety-two (92%) percent of the statements in favor of the Project were form letters, of which eighty-eight (88%) percent were not from the impacted area.
And where did those 92% favorable form letters come from?  The judge elaborated:  "Those backing the MCRP primarily based that support on reliability and economic concerns, and were primarily from businesses not in the five impacted municipalities on a form letter prepared by the New Jersey Chamber of Commerce for its members."
The utility popularity contest was a flop in this instance.  Regulatory public comment hearings are intended to give voice to the community.  The utility's opportunity to make its opinions known comes during the hearing process.  But yet utilities consistently attempt to intrude in the public's opportunity by coercing supportive statements from entities who care little about the project.  It's strictly a numbers game to the utility -- how  many supportive comments can they coerce, and how "important" are the supporters?  RAGE completely drowned these shills out by showing up in record numbers and making honest, heartfelt, personal testimony opposing the project.  Perhaps JCP&L had a hand in its own defeat here by enraging the community to counteract JCP&L's underhanded efforts to set up its numbers game.  Utility efforts to coerce supportive comments from the community is a tactic that has backfired on more than one occasion and it needs to be jettisoned from the utility bag of tricks.

RAGE's victory should be celebrated and admired.  They not only accomplished their goal, but they provided an example that will be studied over and over by transmission opponents on other projects (and dare I say utilities, if they ever pull their heads out of their own behinds long enough to recognize they have a serious problem with opposition groups).
Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.  --  Margaret Mead
Well done, RAGE!  You changed the world!
3 Comments

FirstEnergy Failure

2/14/2018

2 Comments

 
FirstEnergy's attempt to transfer its risky, money-losing coal generating plant to West Virginia ratepayers has failed.  Finally.  It's just too bad all that time and money got wasted on an idea that had no real chance of succeeding.  Only a corrupt regulatory system and galling arrogance made it seem like a good idea.

Because the WV Public Service Commission had approved a similar deal for a different company transfer several years ago, FirstEnergy thought it didn't have to try so hard.  Its idea to transfer the Pleasants Power Station from its competitive generation company to its WV distribution affiliate was a bold joke, flimsily wrapped in "need" and bad economic projections, submitted with a wink and a nod.  FirstEnergy knows that the WV PSC is more interested in the needs of the company than the needs of the ratepayers it was created to protect.  Oh, sure, the WV PSC pretends its mission is to "balance" the needs of ratepayers with the needs of the community at large and the needs of the utility.  However the utility is perfectly capable of advocating for its own needs, and the communities are so bought out by corporate profits that they act like yappy lap dogs, barking at corporate direction.  It is the ratepayers who rely on the regulatory system to protect their interests.  Indeed it is the very nature of a monopoly situation that requires regulation to protect ratepayer interests.  FirstEnergy's WV affiliate has been granted a monopoly franchise to serve West Virginians.  Because FirstEnergy has a monopoly, regulation serves to provide competition where none exists naturally.  It is regulation that controls utility actions to ensure a monopoly does not exert market power over captive ratepayers.  Therefore, the WV PSC exists first and foremost to protect the needs of WV ratepayers captive in a monopoly system.  Perish the thought that FirstEnergy would have to perform and earn its right to own a monopoly franchise.  That thought has probably never even crossed the minds of WV's PSC Commissioners.  They seem to think they exist to make sure the utility is treated fairly.  And that's what they did in the recent Pleasants transfer case.

Knowing that the WV PSC is a captured agency who dances at corporate will, it was much more productive for ratepayers to look beyond the first string of regulators who are supposed to protect them.  The Federal Energy Regulatory Commission isn't as wrapped up in the needs of West Virginia's economy or corporate profits, and is not captured in the same way as the WV PSC, whose commissioners are appointed as lobbied by state franchised utilities.  The chances were better that an impartial decision would be made at the federal level.  And it was.  The FERC rejected FirstEnergy's proposal to transfer the plant between affiliates, finding that the transfer resulted in improper cross-subsidization.  In plain speak, that means that it was not a fair arm's length transaction.  But FirstEnergy, in its sheer arrogance, attempted to apply its West Virginia bag of tricks to influence the federal agency.  That's right, FirstEnergy had its attorney call up a FERC Commissioner to try to influence the agency's decision.  Somehow, FirstEnergy was aware "that the Commission would shortly issue an order adverse to the interests of Monongahela Power."  How was it that a party to a FERC proceeding was aware of a decision of the agency before it was issued?  Because FERC is as much a revolving door regulatory agency as any.  It's a great landing spot for attorneys fresh out of law school with a mountain of student debt.  With just a few years of effort at marginal pay, a FERC staff attorney can make himself marketable to private industry as an "insider."  The regulated entities prize these FERC insiders and pay them handsomely.  FERC is just a springboard to fat paychecks for some attorneys.  That's not to say that all FERC attorneys are using the agency to pad their resumes, I found that there are plenty of staff who take their charge to protect public interests seriously and make a career out of it.  Those public employees are treasures, but as you can see, it only takes a handful of bad ones to trash FERC's public service mission.  I'm happy to realize, though, that one of FERC's Commissioners put a stop to this underhanded effort and reported the illegal contact from FirstEnergy's attorney.  Bravo!  But what happens to the attorney who attempted this improper influence?  I'm thinking that FirstEnergy's attorney knew calling up the Commissioner like that was against the rules.  But he did it anyhow.  Why isn't he barred from practice before the agency in the future?  The only thing he seems to have received is some exposure.  No harm, no foul, he's free to repeat this behavior in the future, perhaps with a Commissioner who may not blow the whistle on him.  It is only when improper behavior comes with significant consequences that it will end.

And why did FirstEnergy think improper influence on FERC would save their bacon?  Probably because it works in other jurisdictions.  I believe that if the same situation played itself out in West Virginia, for instance, that ending the contact and reporting the encounter would not occur.  FirstEnergy only does this because it works.

So here we are again at regulation acting as safeguard in a monopoly situation.  It's a lesson the WV PSC never seems to learn.

And what happened in West Virginia after FERC disapproved the transaction?  The WV PSC approved the transfer, saying that the unfairness of affiliate transactions didn't matter.  The WV PSC was totally unconcerned about the fairness of the transaction and whether it violated the concept of competition in an open market where a utility did not have a monopoly.  The WV PSC tried to pretend it actually listened to public comment and considered it in its decision.  That's a first, but it was contrived nonsense.  The WV PSC's decision to approve the transfer was nothing short of a display of disgusting arrogance.  Someone's fee-fees seemed pretty bruised that the company did not accept their offer to approve the transaction with a delay.  Everyone got some backlash.  The Consumer Advocate gets chastised for protecting consumers:
The CAD takes no prisoners in its attempt to “advise” the Commission of its responsibilities. In its Reply Brief, the CAD emphasizes the gravity of the situation by stating that, if this Transaction is approved, “the harm that redounds to West Virginia captive ratepayers will be a legacy of this Commission.”
Seriously?  The CAD exists to protect ratepayer interests.  Why shouldn't it be direct about the harm to ratepayers?  Its job IS to advise the Commission, no quotation marks needed.  If the CAD can place a little nugget of guilt into the mind of a compromised Commissioner, it's still not a fair trade for years of increased electric rates.  And a Commissioner who resents this effort obviously doesn't have the best interests of ratepayers in mind.  If he did, then the CAD's attempt to inspire guilt would have no effect.  Think about that.

The WV PSC treats "risk" as a non-starter.  The PSC thinks risk exists everywhere and assumption of risk should not be a primary concern in their decision.  Except the company failed to accept the PSC's conditions on approval, stating:
Additionally,the Companies will not accept the conditions included in the Commission Order that would result in Mon Power assuming exposure and significant commodity risk, which is inconsistent with FirstEnergy’s announced corporate strategy.
So it is about the risk after all?  While the ratepayers are supposed to be unconcerned about taking on additional risk from the transaction, the company can base its decision to abandon the transaction on its aversion to risk?  FirstEnergy was trying to transfer its risk to WV consumers, but it was unsuccessful.  And that's the bottom line.

FirstEnergy failed.  Although it was a rough ride with some hairy, scary moments, ultimately the company ends up stuck with their own mess.  We just get the bill.
2 Comments

No Thanks, FirstEnergy!

11/8/2017

1 Comment

 
You can keep your power plant.

That was the conclusion of the West Virginia Consumer Advocate in its reply brief in the matter of the sale of the Pleasants power station to regulated West Virginia affiliates Mon Power and Potomac Edison.

FirstEnergy has been engaged in a scheme to liquidate its failing competitive generation business.  In states where generation is competitive, FirstEnergy is all about selling its money-losing assets.  But in states where generation is regulated, FirstEnergy has been pursuing profitable "sales" of its failing assets into the regulated system, where it is guaranteed to recover all its costs to run the plant, plus a regulated profit.  Several  years ago, FirstEnergy was successful in selling one of its failing assets into the West Virginia regulatory system.  Ratepayers have paid higher rates to operate "their" power station at a loss.  ITYS.  Now FirstEnergy has another failing asset for sale and it wants to double down on increased rates for West Virginia electric consumers.  This hotly contested issue has been going on for the past year and is finally facing a decision by the West Virginia Public Service Commission.

Our Consumer Advocate, who represents the interests of West Virginia electric consumers, has done the math:
First, the rate benefit to residential ratepayers is a one year benefit of $11.52. The Companies provided no evidence of rate impacts beyond December 2018. The absence of this information is intentional.

As originally proposed by the Companies, if the acquisition of Pleasants is approved, there will be a $31,486,971 net decrease in rates for the 16-month period of September 1, 2017 through December 31, 2018, which is a 1.6% overall decrease. Residential customers would experience a decrease of about 0.9%. The decrease for a residential customer using 1,000 kilowatt-hours per month would be $0.96 per month, which would result in a decrease to $111.52 from 112.48 per month.  It is important to note that the decrease in customer rates is guaranteed only through December 2018.

And that "decrease" is an estimate subject to true up with actual costs.  Realized "benefit" may be less.  In fact, any "decrease" could disappear entirely and turn into an increase.

As well, all risk from the sale of energy from the plant into energy markets will transfer from FirstEnergy shareholders to West Virginia electric consumers.  In addition, the risk of owning and operating the plant itself (and its filthy ash pond) will also transfer to ratepayers.  On your behalf, the Consumer Advocate says, "No thank you."
West Virginia captive ratepayers are not hedge managers or virtual traders in the PJM markets. If the Commission approves this transaction that is what they will become: buyers of significant surplus capacity that Companies are betting (on their behalf) will provide benefits for years into the future. Pleasants was rejected by FirstEnergy as too risky. The overwhelming evidence in this case contradicts all Companies’ claims that there will be any benefits to captive ratepayers. Now FirstEnergy wants Companies to manage that risk for 500,000 ratepayers. As the legal representative of ratepayers, no thank you. The Pleasants acquisition should not be approved.
If it's too risky for FirstEnergy shareholders, it's too risky for me.  This should be a non-starter.

But yet the PSC Chairman is toying with the idea of a
"conditional sale."
  I guess he must be feeling the pressure from coal companies who don't want to see one of their buyers disappear, plant workers who don't want to see their jobs disappear, and the community around Pleasants who don't want to see one of their employers and tax payers disappear.  Why is it up to West Virginia electric customers to suddenly provide these benefits to suppliers, workers and the community?  When Pleasants was profitable, FirstEnergy took all the profits, setting nothing aside to compensate these parties at the inevitable time that the plant was no longer profitable.  Perhaps it is FirstEnergy who should be saddled with the costs of its own failure.  Ordering West Virginians to pick up the burden of FirstEnergy's failure is a losing proposition.  How long should we do this?  At what point will closure of this old power station release West Virginians from this burden?  Will we be forced to pay extra to support coal companies, workers and communities  in perpetuity because no one has the foresight to plan for the inevitable?  This has to end, and responsibility for the failure should be placed on the party who caused it... FirstEnergy.

A "conditional sale" won't work out any better than FirstEnergy's last "conditional sale" of Harrison.  Despite the PSC attaching "conditions" to protect ratepayers from that disaster, we've paid millions in increased rates.  A "conditional sale" is a coward's solution to try to please everyone.  And guess where the blame is going to go if a "conditional sale" ends up costing ratepayers more money?
The CAD must begin by emphasizing that if this transaction is approved the harm that redounds to West Virginia captive ratepayers will be a legacy of this Commission.
Why does the WV PSC Chairman want to accept blame for FirstEnergy's failure?  Probably because he doesn't have to pay for it.  You do.

No thanks, FirstEnergy.
1 Comment

JCP&L Feels the RAGE

11/6/2017

0 Comments

 
Bravo, RAGE!  The Residents Against Giant Electric (RAGE) have identified a cheaper, less invasive alternative to JCP&L's Monmouth County Reliability Project (MCRP), currently before regulators.

At a press conference last week, RAGE shared its initial brief to Administrative Law Judge Gail Cookson at the New Jersey Board of Public Utilities in the matter of the MCRP.  The brief is a summary of evidence leading to legal conclusions, and RAGE's brief was stunning.  JCP&L "expert" witnesses were systematically unmasked and dispatched to the Land of Corporate Biased Quacks.  JCP&L was demonstrated to have mislead the public about the MCRP, including hiding the true evolution of its project.  The MCRP was dreamed up and a route chosen before PJM Interconnection found a need for it and ordered it to be built.  And speaking of PJM, they didn't escape the dead-eye scrutiny of RAGE's legal team, who remarked:
The participation of Mr. Sims [PJM witness] in this proceeding as an enthusiastic cheerleader for an expensive and blighting transmission project even after being presented with a feasible non-generation solution to the P7 contingency raises very serious questions about the neutrality of PJM. As is the case with other RTOs, PJM is by law and FERC decisions supposed to be scrupulously neutral.  While this is ordinarily taken to mean that it cannot discriminate in favor of one or more member utilities or independent power producers, it also means that PJM cannot be in the business of advocating a solution that has been given an “exclusive” to one of its member utilities. The Board should express condemnation of PJM’s role in this case.
Lots of transmission opposition groups have demonstrated that utility (and RTO) solutions to purported violations are massively expensive overkill that cannot be supported with transparent and accurate calculation, but RAGE took it one step further.  They proposed a fully formed and vetted alternative solution that would not only cost $80M less than PJM's solution, but also would not require new greenfield transmission sandwiched between dense residential neighborhoods and a congested rail corridor.
During testimony, RAGE unveiled its alternative to the transmission line plan — an alternative the group says would cost 70 percent less, and present less danger to the community.

The group’s solution, backed by a power flow analysis and an engineering expert, includes the addition of two STATCOM devices — each about the size of an RV — at the Red Bank substation. It also calls for updating 11 of the existing 34.5 kV lines coming out of Red Bank.

“That’s it — all you need to do is update some existing lines that probably need replacing anyway, and add two big boxes to Red Bank, Kanapka said. “Do these two things and the P7 violation goes away, for a total estimated cost of just $30 million.”

In its most recent estimate, JCP&L said their project could cost $111 million, and that does not include the fee for usage of NJ Transit’s property.
Never underestimate your opposition, JCP&L!  RAGE is obviously composed of a bunch of overachievers who leave nothing to chance.  What was it General Yamamoto was supposed to have said [Hollywood version]? 
I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.
The RAGE giant isn't going away.  Isn't it time for JCP&L to fall on its sword?

Not only has RAGE excelled at the regulatory game, it's also on top of its political game.  Numerous candidates for elected office have fully endorsed RAGE and voiced their opposition to the MCRP.  Good luck on election day to RAGE and its supporters!

What's next for this wildly successful transmission opposition group?  Reply briefs to the BPU judge, an opinion on the MCRP from the judge, and then the entire case record is forwarded onto the BPU Commissioners for final decision.

My money's on RAGE for the win!
0 Comments

Noper on the NOPR

10/25/2017

1 Comment

 
Tongues are wagging about the DOE-introduced Notice of Proposed Rulemaking (NOPR) regarding compensation of baseload generators for the "resilience" they provide.  Hundreds of bombastic comments were filed with the Federal Energy Regulatory Commission, many venturing far into the periphrastic category.  I genuinely feel sorry for the FERC employees who have to read all these and tabulate some summary of their main points.  Is there a point?  Wouldn't a simple "yes" or "no" have sufficed?  Some media outlets are pretending to read them all and produce their own little summaries.  My advice?  Don't waste your time.  You may not live long enough to get through them all.  What a colossal waste of time!

The cost of all the legal billable hours spent creating this dreck (and reading it!) could probably have been better spent rebuilding Puerto Rico's devastated electrical system.

Blah, blah, blah, little commenters.  As if.

So, I looked at the docket.  Read very, very few.  You can probably limit your review to scrolling through the docket sheet.  Here's a few things I gleaned from my own scroll...

FirstEnergy should probably get some sort of award for "inspiring" the greatest number of comments from "independent" third parties, all concocted in perfect legal prose.  Who actually wrote all these?  And will the cost of such find its way into my electric bill?

The Nuclear Information & Research Service should probably get its own award for being a major factor in crashing FERC's e-filing system on comment deadline day.  Comment in 76 separate parts?  Was that really necessary?  It must have taken the filer all day to accomplish that.  And I thought filing testimony and exhibits in 20 parts was trying on the patience, once upon a time.  Seventy-six (76!) parts.  At least it made scrolling through a certain part of the docket a lot faster.  What were these 76 parts, anyhow?  Layperson comments.  Gushing on about clean energy.  Some which predated the NOPR by months.  Now couldn't this commenter have filed these 76 parts earlier to avoid this congestion on deadline day?  Couldn't all of these commenters have avoided congestion by filing their comments earlier?  A deadline is just that... a deadline.  It doesn't prevent earlier participation.  Lawyers love playing the deadline game, an exercise in not showing yours until the other parties show theirs -- legal chicken.  While waiting until the last minute to file may have some purpose in preventing other parties from using your filing to bolster their own, in this NOPR it was pointless.  The only thing these commenters accomplished, apparently, was crashing FERC's e-filing system.  I pity the poor soul who was trying to get something filed on another docket that day.

Some of the comments attempted ad hominem arguments that we must build more transmission to achieve "resilience."  Build, build, build, a bigger, more diverse network of vulnerable energy links is just what we need.  (Thanks, WIRES, you're nothing if not trying to fill your own pockets.  Every.single.day.)  But what good is a pile of wire if it's not connected to a generator?

The only comment worth reading was written by Amory Lovins of the Rocky Mountain Institute.  Not only is it a fresh, entertaining joy to read, it tells FERC (and DOE, and all the other commenters!) everything they need to know about "resiliency."  Such as:
The design principles and practices that create energy resilience (or, as the Secre­tary calls it, resiliency) were first framed for the Penta­gon in 1981, and still broadly guide DoD doctrine for resilient power supplies to military bases and other facilities critical to national security. These principles do not include continued or enhanced reli­ance on inherently vulnerable powerlines hauling electric­ity hundreds of miles from remote central power stations—a system rife with single points and modes of failure re­quir­ing costly redundancies but still not fully effective, as these comments elaborate. Such grid-dependence is the largest factor preventing electric resilience.
Sorry, WIRES, you're not resilient.  Instead:
Rather, resilient design logically starts at the customer and works back up the supply chain, seeking to make that chain as short as possible and each of its links robust, redundant, with graceful failure and quick rerouting or repair. As a lay summary of Brittle Power explained, a resilient system “has many relatively small, dis­­persed elements, each having a low cost of failure. These substitutable compo­nents are interconnected not at a central hub but by many short, robust links. This configura­tion is analogous to a tree’s many leaves, and each leaf’s many veins, which prevent the random nibblings of insects from disrupting the flow of vital nutrients.”
And what's wrong with an increasingly larger grid connecting more remote power generators?
Thus the NOPR’s obsession with continuity of fuel supply to generators—even if 2.1–2.4’s rebuttals below were invalid—ignores the grid. Yet any rational treat­ment of electric reliability and resilience must focus primarily on the grid.
 
The Electric Power Research Institute long ago estimated, and modern data agree, that roughly 98–99% of power failures originate in the grid, and ~90–95% of those in the distribution grid. As the NOPR’s §II(A) rightly notes, Ameri­ca’s grid compris­es 707,000 miles of high-voltage transmission lines, 55,800 substations, and 6.5 million miles of local distri­bu­tion lines. All are interruptible by high winds, lightning, ice storms, tree limbs, cars crashing into power poles, squirrels, birds, operator errors, fires, solar storms, electro­magnetic pulses, cyberattacks, or rifle bullets.
 
As I write this, about three million Puerto Rican American citizens face months of further blackout, with only 16% returned to service after three weeks, because a hurricane destroyed their grid, even though their 98%-fossil-fueled utility has ample and available generating capacity with adequate fuel on hand. The NOPR is irrelevant to them and to the other Americans blacked out in Texas by Harvey, Florida by Irma, the Virgin Islands by Irma and Maria, etc. Hurricane Maria’s grid destruction in Puerto Rico alone has already about doubled in 2017 the total outage cus­tomer-hours experienced nationwide in 2016.
 
Yet the NOPR says and does nothing about the brittle grid connecting power plants to customers—only the virtual non-problem of how big a pile of coal sits at each plant. The NOPR does vigorously seek to prevent and reverse the competitive mar­ket exit of outdated plants typically sited half to several states away from cus­tom­ers, hence inherently vulnerable to grid failure. The NOPR’s effort to reverse the market-driven decentralization and diversification of historic grid depen­dence would weak­en national security: since grid failures dominate total failures, any electricity strate­gy that perpetuates and increases reliance on remote central power plants, no mat­ter how reliable they are, will increase vulnerability and reduce resilience.
It doesn't matter how reliable your one generator is if the transmission network that carries generation to users isn't secure.

The answer?  Distributed generation -- power generation near users that relies on its diverse nature to prevent widespread blackout due to the failure of one generator.

Central station generators and a long network of fragile transmission and distribution lines (which includes any aerial connection, no matter how old) are last century's "resiliency."

How much more time and money will our government and its investor owned-utility masters waste on this manufactured problem?  As much as you give them, little ratepayer, since you're paying for this entire debacle.  Nothing to see here... let's move on.
1 Comment
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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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