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Is FirstEnergy in Bed with PJM?

9/10/2014

0 Comments

 
They're not fooling Len Chidester of Montrose, West Virginia.  He's heard some nasty rumors about the shoddy way FirstEnergy treats its linemen, neglects maintenance of equipment, and fails to read electric meters.  Apparently this is all being done under the mandate of some company named PJ+M. 

Mr. Chidester believes PJ+M is in bed with FirstEnergy.  If they breed, the child would probably behave a lot like this one:
Post by Noni Moore.
Mr. Chidester concludes that FirstEnergy bought Mon Power and Potomac Edison.  FirstEnergy is bleeding these companies for every nickel they can squeeze by their phoney meter reading process, doing minimal repairs, and who knows what other practices.  And he advises that a very major investigation be launched into exactly what the power companies, FirstEnergy, Mon Power, Potomac Edison and the company PJ+M have been and are continuing to do.

He's exactly right!
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Potomac Edison Customer Shopping List:  Candles

9/10/2014

1 Comment

 
The union busters at FirstEnergy are at it again.  The Herald-Mail reports that local union members have rejected FirstEnergy's contract offer.  The local union represents workers from Frederick and Washington counties in Maryland, the Waynesboro area in Pennsylvania, and West Virginia's eastern panhandle.
The company and the union have been negotiating for a new contract since March 2013. Federal mediators have been involved during the past several months.
Whalen said union members are upset at FirstEnergy demands such as that they use their own "vehicles on their own time" to reach construction and maintenance worksites, and, because the utility is at "an all-time low staffing level," each worker is being forced to respond to emergency calls far more often than was normal a few years ago.
Union rep. Robert Whalen said that by rejecting the contract offer, union members have authorized a strike, if necessary.

But never fear, Potomac Edison customers... useless PR flack Toad Meyers has promised to keep your lights on by magic!
...the utility has plans to continue providing electrical power to its 382,000 customers in Potomac Edison’s Maryland and West Virginia territory “no matter what happens,” company spokesman Todd Meyers said.

“We’ll keep the lights on for our customers,” he said.
It must be magic, because I don't think Toad could cut it in lineman school.  I'm still waiting for him to come read my electric meter and he hasn't shown yet!  I wonder if they'll let him use a company truck for that, or will he have to use his own vehicle?  In case your lights go out, don't bother with the emergency number, call Toad:  (724) 838-6650.

I'm going to stock up on candles and gas for the generator.  I have no faith in Toad's promises.
1 Comment

Sign a Petition Against Potomac Edison Rate Increase

9/9/2014

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Mountain Party candidate for the 66th District seat in the WV House of Delegates, Danny Lutz, had great success with a petition against Potomac Edison's recent request for a 17.2% rate increase when he circulated it at the Jefferson County Fair a couple weeks ago.

Danny presented a sweet 500 signatures of protest to the PSC last week!

Miss your chance to sign the petition at the fair?  Danny's got you covered!  He's made copies of the petition available for you to sign at several supportive local businesses.

Visit these establishments and ask to sign the Potomac Edison rate increase petition:

Roger's Tire and Auto               Martinsburg
Orr's Farm Market                    Martinsburg
D&D Meats                              Inwood
Mountain View Diner                Charles Town
Hampshire's Body Shop           Kearneysville
Cantuta Cafe                           Charles Town
Needful Things                        Charles Town
Weber's Store                         Shannondale

And be sure to attend the Public Service Commission hearings on the rate increase in Shepherdstown on October 6 to watch Danny present his handiwork to the Commissioners.

If you'd like a blank copy of the petition to circulate at your business, with your friends, neighbors, or family, just ask.  Unless you're that other guy who works for the utility... he can't have my petition... or my vote.
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Protest Potomac Edison Rate Increase in Shepherdstown on October 6

8/29/2014

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The WV Public Service Commission issued an Order today scheduling public comment hearings on Potomac Edison's proposed 17.2% rate increase.

Two local hearings will be held in Shepherdstown at the Shepherd University Frank Center on October 6, 2014.  The first hearing begins at 1:00 p.m. and will be followed by a second hearing beginning at 6:00 p.m.

Customers are strongly encouraged to attend and sign up to speak briefly about how the proposed rate increase will affect you.  If you can't make the start time, that's okay, late arrivals will still be permitted to speak as long as they arrive before the hearing concludes.

This hearing is also the place to tell the Commission how you feel about its decision to make you pay the $7.5M cost of Potomac Edison's monthly meter reading ordered as a result the General Investigation into the company's meter reading and billing practices.

See you there!
0 Comments

FirstEnergy's New Plan:  Powering Our Profits

8/6/2014

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Silly schemes and misleading names were in high gear during yesterday's FirstEnergy Q2 2014 Earnings Call.  You know you're in for a treat when Tony the Trickster opens the festivities with another one of his *heavy sighs*.

FirstEnergy announced its new plan to make Ohio consumers assume all the risk of its unregulated, competitive generation fleet and called it, "Powering Ohio's Progress."  But, let's get real here, FirstEnergy should really call it "Powering Our Profits," because that's its purpose.

And I blame the birth of this ridiculous scheme on the West Virginia Public Service Commission, who set up West Virginia's consumers to absorb the company's risk on its Harrison power station last year.  In that scheme, West Virginia customers took on the burden of paying the operating costs of the Harrison power station by purchasing all its generation.  In turn, FirstEnergy would sell any excess power into regional markets and return the profit it earned doing so to the consumers.  Sounds great, right?  However, the cost of owning and operating Harrison is greater than any profits that may be derived from selling excess power into the market, therefore, consumers would end up paying more.  But, the WV PSC added one important term to its crazy plan that required the company to use the profits from market sales of power to pay down the "acquisition adjustment" fee of acquiring Harrison that was added to rates.

It is because the WVPSC allowed FirstEnergy to foist the risk of owning and operating Harrison onto its consumers that FirstEnergy got so encouraged to attempt to foist the risk of two of its other competitive plants onto Ohio consumers. 

But, the big difference here is that West Virginia is a fully regulated state, while Ohio is a competitive state.  In Ohio, electric customers can choose their generation supplier, but not their distribution provider.  The electric distribution system is owned and operated by the utility who traditionally served the customers.  Even deregulated states cannot change that, unless they allow other companies to construct their own separate distribution system to serve customers, and that's neither economic nor logical.  Therefore, even in deregulated states, customers are still served by, and receive a bill from, their regulated distribution provider.  Where generation is competitive, the distribution company simply adds the charge from your generation company to your bill and passes the costs through to you.

FirstEnergy's Powering Our Profits surcharge would be tied to its regulated distribution affiliates in Ohio.  The charge is non-bypassable, which means that it would be part of your distribution service and you would pay it no matter who your generation provider is.

So, let's look at this...  FirstEnergy Solutions is the FirstEnergy subsidiary that owns the competitive generators.  As the owner, FES must cover the entire cost to own and operate the plants, and in return it keeps any profits or absorbs any losses that result from selling the generation into the competitive power market.  But, market prices have been low and are not expected to recover any time soon.  This means that FES has been subject to more losses than profits from the generators it owns.  So, FirstEnergy's scheme will force its regulated distribution companies to enter into a contract to purchase all the power generated by FES's plants at a set price that will cover FES's costs and pay it an 11% profit.  Suddenly, FES's generators are profitable and risk-free!  But the distribution customers have a bunch of very expensive power they have purchased.  Can they use it?  No!  FirstEnergy's POP plan requires the distribution companies to sell the generation they have purchased into the competitive power market at whatever price it can get.  FirstEnergy says that in the first three years, where prices can be predicted, the distribution companies and their ratepayers will take a loss on the sale of power.  However, FirstEnergy says that its crystal ball predicts that power prices will rise in the remaining years of the 15 year contract and that a profit will be made selling purchased power into the market.  Gotta ask... if FirstEnergy is so certain there's a profit for these competitive generation plants just over the horizon, why don't they hold on them?  Because there isn't.  It's all smoke and mirrors, hopes and dreams.

FirstEnergy wants to hand the risky hot potato of owning uncompetitive generators to its Ohio distribution customers so that they can absorb the risk of market prices.

What a bunch of crooks!
0 Comments

PPL's PJM Pipedream

7/31/2014

6 Comments

 
W T
PPL?
I think PPL needs to do a round of drug testing of its employees.  Whoever came up with this idiotic idea must be on something.

PPL announced today that it had "submitted an application to PJM" to build a 725-mile 500kV line, estimated to cost $6B, through four mid-Atlantic states.

Never going to happen.

Residents of affected states are still reeling from PJM's last big transmission building idea, Project Mountaineer, that cost them billions, including nearly half a billion dollars for planned projects that were never built.  Try it, PPL, and you will experience coordinated, strategic opposition like you've never seen before!

The Morning Call seems to be the first media outlet to... err... call PPL out on its outrageous money-making scheme.  PPL interstate transmission project both costly and lucrative:  Project would fill utility coffers while costing ratepayers billions of dollars.

Morning Call says:
The project also would be a significant source of revenue for PPL Corp., PPL Electric Utilities' Allentown-based parent. Under Federal Energy Regulatory Commission rules designed to encourage infrastructure investment, utilities may earn a profit of 11.68 percent on transmission projects.
That translates into a profit of up to $700 million. PPL would share the money with any other utilities that participate in the project.
PPL customers, meanwhile, would see the cost, including utility profits, reflected in their rates — though the burden of paying for the project would be shared by ratepayers in all four of the states involved.
But, Morning Call only sees the tip of this iceberg.  PPL can apply to the Federal Energy Regulatory Commission for transmission rate incentives that would up its profits significantly.  In addition to incentive ROE adders that can increase the 11.68 percent several percentage points, PPL can also ask for guaranteed cost recovery in event of abandonment, a return on construction work in progress that enables them to begin earning that juicy return immediately, even before the project is completed, and many other outrageous financial rewards.

In addition, Morning Call's math is wrong.  The $700 million profit the reporter calculated is only that earned in THE FIRST YEAR of operation.  Transmission project rates work sort of like a 40-year mortgage.  The return is calculated and paid on the depreciating balance of the project cost every year!  So, in the first year of operation, PPL would earn a return on $6B and collect a certain amount of depreciation on the project assets that would lower the balance owed by ratepayers.  The second year, PPL would earn a return on the depreciated balance, and additional depreciation.  And so on, over the 40 year (or more) life of the capital assets.  PPL's possible profit from this ridiculous project is a nearly endless goldmine!

And, one last thing Morning Call gets wrong -- this project will be paid for, in part, by ratepayers in all 13 states in the PJM region because of its size.  A 500kV project built in PJM is cost allocated at 50% to all ratepayers based on peak usage, with the other 50% being assigned to the cost causers/beneficiaries.

Moving right along into PPL's feeble assertions that its project will:
If approved, PPL predicts, the project will improve energy reliability and security and provide customer savings by eliminating transmission bottlenecks and encouraging development of lower-cost natural gas-fueled generation plants.
The new plants would help replace energy supplied today primarily by coal-fired plants that, under increasingly stringent federal air quality standards, are expected to be retired in coming years.
This doesn't even make sense.  The coal-fired plants that will be closing are located in the Ohio valley, not on the east coast.  Once those coal-burners are offline, it will free up significant transmission capacity for any new "mine mouth" Marcellus shale gas-fired plants built in the Ohio valley.  Why would we need to build a new west to east transmission line when there's already plenty of them sitting idle due to coal-plant closings?

PPL says they will have a robust public input process to find out where to site the line.  Seriously?  That strategy doesn't work anymore.  It's all about need for the line in the first place, not where to put it.  Get with the brave new world of transmission opposition, PPL!

And speaking of siting the line... where is that new Maryland substation supposed to be on that featureless map?  If you compare it to a real map of Maryland, it looks like it's in Howard or Carroll counties.  But, what if there was land available in neighboring Frederick County for a proposed substation?  Oh, deja vu!

This has got to be the most thoughtless transmission proposal I've ever seen. 

Never going to happen.
6 Comments

Some Punishments are Worse than Others

7/25/2014

1 Comment

 
Marcelino Cuadra is in big trouble.  He's been sentenced to seven years’ probation after he pleaded guilty to charges of corrupt organizations, theft of services and conspiracy to commit theft of services in connection with electric meter tampering incidents in Pennsylvania.  He also has to complete 60 hours of community service and re-pay nearly $350K to electric utility PECO.

Cuadra was convicted of tampering with numerous business and residential electric meters to "fix" them so monthly usage would be reduced.  He says the electric customers paid him for the "fix."

Compare Cuadra's plight to West Virginia's recent meter scandal, where FirstEnergy subsidiaries Mon Power and Potomac Edison were found by the Public Service Commission to have failed to read customer electric meters bi-monthly as required.  This resulted in consecutive estimated bills where monthly usage would be reduced, only to show up on an actual read bill months later that amounted to thousands of dollars.

What was FirstEnergy's sentence?  A $7.5M yearly rate increase to pay for monthly meter readings.

I think it must have all been in the technique employed to commit the act, since both seem to be the result of corrupt organizations and conspiracy.

But, don't call Marcelino, there are safer ways to save energy.
1 Comment

FirstEnergy's Name is M-U-D

7/16/2014

2 Comments

 
Holy corporate reputation issues, Batman!

FirstEnergy wannabe-spinner Charlene Gilliam (All right?) crashed and burned at a Hampshire County Commission meeting yesterday.  Bless her heart, it probably wasn't all her fault.  It's because she works for a company that has ruined its reputation in this state (and beyond) through a series of greedy, self-interested attacks on its customers and employees.

The people have had it with FirstEnergy's corporate disinterest in the hand that feeds them.  And FirstEnergy is too STOOPID to have seen this one coming.  Sometimes, I wonder how my lights stay on at all, and then I remember that any smart people who still work for FirstEnergy are the ones driving the bucket trucks that come to our rescue.  It's upper management that has been snorting the STOOPID sauce.


Commissioner Hott seems to agree:

“What I think would help is to get some of these guys with ties on to come down and see what’s actually going on. They need guidance at a higher level,” Hott said.
Like maybe Charlene should have brought this character along yesterday? 
2 Comments

Commissioner McKinney Explains Why West Virginia's PSC is "Handcuffed"

7/1/2014

0 Comments

 
A familiar face peered out at me from my RTO Insider newsletter this afternoon.

Commissioner Jon McKinney made a statement at the annual MACRUC (Mid-Atlantic Conference of Regulatory Utility Commissioners) conference last week that goes a long way toward explaining why the WV PSC always seems to be at odds with the needs of West Virginia's utility consumers.  In explaining why West Virginia might not be able to cooperate with other states in a regional effort to comply with the EPA's new carbon rules, Commissioner McKinney admitted:
“For [a regional solution] to actually happen, it goes way beyond the public service commissions. It has to get [approved by] the governors and the legislators,” West Virginia Public Service Commissioner Jon McKinney told the Mid-Atlantic Conference of Regulatory Utilities Commissioners’ (MACRUC) annual education conference. “I’m handcuffed in my ability to do that. It has to start someplace else.”
And Commissioner McKinney is "handcuffed" by West Virginia Governor Earl Ray Tomblin because he owes his day-to-day employment to the grace of a controlling, corporate-owned political figurehead.

Commissioner McKinney's 6-year term as Commissioner expired in 2011, three long years ago.  However, he continues to serve at the will of the Governor, without being officially re-appointed.  At any time, Governor Tomblin could appoint someone else and punt Commissioner McKinney into the wild, blue yonder.  But he doesn't.

By playing games with Commission appointments, Governor Tomblin rules the PSC with an iron (corporate-funded) fist. 

It's not that Governor Tomblin is too busy to re-appoint Commissioner McKinney, or appoint someone else.  Earl Ray was "Johnny on the Spot" when former Allegheny Energy attorney Michael Albert's commission appointment expired last year.  Albert was quickly reappointed to a third term, and "our" state senators lined up to rubber stamp his appointment.

So, when Commissioner McKinney says he's handcuffed, he probably really means it.

Is this any way to serve the public?
0 Comments

Senate Committee Confirms Bay's FERC Nomination - With Training Wheels

6/18/2014

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After enough wrangling to make a cowboy cry, the Senate Energy and Natural Resources Committee confirmed the nomination of Norman Bay as Chairman of FERC... as long as he keeps the training wheels on his regulatory tricycle for the next 9 months.

Bay can be a FERC Commissioner, as long as Acting Chairman Cheryl LaFleur gets to continue to "act" for the first 9 months of Bay's tenure.

RTO Insider has the best coverage of today's events here.

RTO Insider notes that our own Plastic Senator Joe Manchin sold out in a hurry.
Among those who had expressed concern over Bay’s limited energy policy experience was Manchin, who helped sink the bid of Obama’s previous nominee, former Colorado regulator Ron Binz.

That sparked a flurry of negotiations over the last several days among the White House, Murkowski and Energy committee Chair Mary Landrieu (D-La.), which resulted in the president’s concession not to appoint Bay chairman immediately.
Poor, old Plastic Joe.  Some days, he just can't seem to make up his mind.
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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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