“Initially, the town was told it would be 100 percent by rail,” said Glenville Town Supervisor Chris Koetzle of what CHPE first said when they explained that part of the land-based section of line would go through his town. 

But over the last few months, [the town] started getting phone calls from residents of the Woodhaven neighborhood who were contacted by CHPE for easements.

Negotiations over the easements and the idea the land could be taken through eminent domain has some people contacting their lawyers.

“I’ve had a couple of people call me,” said Patrick Seely a lawyer with the Jones Hacker Murphy firm in Troy. He hasn’t actually been retained, but noted that in easement cases, there is often a negotiation. “A little bit of horse trading goes on all the time,” he said.

Project title:  Mid-Atlantic Power Pathway (MAPP)

Project description:  Exelon is proposing a 230 mile, 500 kV AC / 400 kV DC high-voltage transmission line originating in Northern Virginia, crossing Maryland, traveling up the Delmarva Peninsula and terminating in southern New Jersey.

When four representatives of National Grid came before Concord City Council on Monday to start the long process of expanding a power line through the state bringing electricity from HydroQuebec, they soon encountered a ghost.

“Our community still suffers from PTSD with regard to Northern Pass,” Councilor Jennifer Kretovic told them. “When you mention the words HydroQuebec, that will automatically raise concern.”

The four representatives nodded glumly.

Component title:  Fort Martin - Doubs 500 kV #1 Line

Project description:  Construct ~158 miles of new 500 kV line from Fort Martin Substation to Doubs Substation.Terminate the new transmission line and revise relay settings at Doubs and Fort Martin substations.Install fiber OPGW along the new line route. The construction of this new line will require the acquisition of 158 miles of new right-of-way, forestry clearing, permitting, and access road construction. Re-terminate the Bismark 500 kV Line at Doubs Substation. Aerial LiDAR will be required. This new transmission line will require Proposal Components 1 (Doubs Substation - Install500 kV Breaker), 2 (Doubs Substation - Expand 500 kV), and 4 (Fort Martin Substation - Install 500kV Breaker) to be completed.

This new 500 kV line will be constructed in West Virginia, Virginia, and Maryland. Full Applications will be required in each state. - It is assumed that the new 500 kV line will parallel existing ROW for approximately (85.6) miles and require (74.4) miles of new ROW not adjacent to existing ROW. It is assumed that no existing lines will be overbuilt with double circuit structures, but existing line rebuilds will be considered where applicable. - Approximately (695) parcels will be affected by the line route. Assumed 5% condemnation (35 parcels).

The right-of-way width is assumed to be 200 ft. This width is based on the widest ROW needed for 500 kV and does not account for structure configuration or span lengths. Widths needed may vary upon final design.

The new Fort Martin-Doubs #1 500 kV Line will be constructed on double circuit 500 kV tubular steel monopole and two-Pole structures. The second 500 kV circuit is to be left vacant and installed at a future date. - The average span length is 1200 ft. - It is assumed that the new double circuit monopole structures will have an average height of 180 ft. Final structure heights will need to be determined during project development. FAA filing and application may be required. - The new structures will utilize custom 500 kV V-string and double I-string suspension and dead-end insulator assemblies.

This new 500 kV line provides a direct connection from the west side of the system to the east side. - This new line provides the ability to install a second Fort Martin - Doubs 500 kV Line on the same structures, without additional right-of-way acquisition. - This new line route will provide the opportunity to loop the Fort Martin - Doubs 500 kV Line into Bedington and/or Black Oak substations in the future, if necessary for reliability or resiliency. - Greenfield construction is assumed due to outage constraints, but existing rights-of-way and corridors to rebuild lower voltage lines will be considered where applicable.

Component title:  Meadow Brook - Doubs 500 kV Line

Project description:  Construct 55.3 miles of new 500 kV line from Meadow Brook Substation to Doubs Substation.Terminate the new transmission line and revise relay settings at Doubs and Meadow Brook substations. Install fiber along the new line route. The construction of this new line will require the acquisition of 55.3 miles of new right-of-way, forestry clearing, permitting, and access road construction. Re-terminate the Meadow Brook - Loudon & Meadow Brook - Front Royal 500 kV lines at Meadow Brook Substation. Aerial LiDAR will be required. This new transmission line wil lrequire Proposal Components 1 (Doubs Substation - Install 500 kV Breaker), Component 2 (Doubs Substation - Expand 500 kV), and Component 3 (Meadow Brook Substation - Expand 500 kV) to be completed.

This new 500 kV line will be constructed in Virginia, West Virginia, and Maryland. Full Applications will be required in each state. - It is assumed that the new line will parallel existing ROW for approximately (22.8) miles and require (32.5) miles of new ROW not adjacent to existing ROW. It is assumed that no existing lines will be overbuilt with double circuit structures, but existing line rebuilds will be considered where applicable. - Approximately (146) parcels will be affected by thel ine route. Assumed 5% condemnation (7 parcels).

The right-of-way width is assumed to be 200 ft. This width is based on the widest ROW needed for 500 kV and does not account for structure configuration or span lengths. Widths needed can vary upon final design.

This new line will be constructed on single circuit 500 kV tubular steel monopole structures with an average span length of 1200 ft. - The new structures will utilize custom 500 kV V-string and double I-string suspension and dead-end insulator assemblies. - New single circuit structures will have an average height of 150 ft.

This new 500 kV Line will provide an additional and much shorter electrical path between Meadow Brook and Doubs linking the Black Oak-Bedington corridor with the 'AP South' corridor. - Greenfield construction is assumed due to outage constraints, but existing rights-of-way and corridors to rebuild lower voltage lines will be considered where applicable.

Grain Belt is also in the process of shifting some of the risk of the project to taxpayers, through its application to the DOE for a loan guarantee for a substantial portion of the construction costs.  And by shifting a portion of the risk of the project to taxpayers, Grain Belt will no longer be bearing all of its risks – raising the question of whether it is still are a merchant project.

Under the terms of the FERC order which initially granted Grain Belt the authority to negotiate rates with its customers, Grain Belt is required to solicit potential buyers of capacity through what is called an “open solicitation” process.  Grain Belt began the customer solicitation process in January of 2015 – more than 8 and a half years ago.  Yet despite its concerted efforts to do so, since that time Grain Belt has failed to sell a single MW of capacity at market rates.

Grain Belt’s lack of success is certainly not due to a lack of trying. After the close of the previous CCN case, Grain Belt has been actively seeking, although unsuccessfully, to sell capacity on its line at a sustainable rate.

At one point Grain Belt had signed Memorandums of Understanding (MOUs) with three entities for the sale of capacity on the Project.  But the period for further good faith negotiations regarding each of those MOUs has now expired.  Therefore, those parties have no obligation to buy anything from Grain Belt or to even engage in future negotiations with Grain Belt.  In addition, Grain Belt signed a Letter of Intent with another party regarding the sale of an interest in the Project, but the commercial terms of that proposal had not even been disclosed by Grain Belt to the counter-party at the time the testimony was filed in this case.  Thus at this point, the Letter of Intent is at best nothing more than a non-binding MOU.  Also, last year Grain Belt submitted proposals to four utilities for the sale of varying interests in the Project.  Apparently, none of those utilities has accepted or even formally responded to Grain Belt’s proposed sales.

In summary, despite its on-going efforts to do so, Grain Belt has failed for nine years now to sell even a single MW of capacity at a sustainable rate. Yet they continue to hope that if they build the Project, the customers will come.  Given Grain Belt’s track record over these past nine years, it is time to recognize that the emperor has no clothes.

Invenergy recently filed a formal complaint with the FERC against MISO regarding the way MISO treats the Grain Belt Project in MISO’s long-term transmission planning process.

Briefly, Invenergy’s complaint is that MISO does not include the Grain Belt project in MISO’s “base case” in its yearly evaluation of what additional transmission projects MISO should add.

Invenergy no doubt knows exactly what it was doing in filing the complaint case against MISO. If it is successful, its efforts in that proceeding could prevent MISO from pursuing alternative transmission service that could duplicate Grain Belt’s Project. If Grain Belt is attempting to eliminate competition from the MISO projects, it is fair to ask how confident Grain Belt could be in its own financial viability.

Grain Belt contends that its investors bear the risk of the Project.  However, as Staff has observed, “Invenergy has repeatedly petitioned FERC to require RTOs to pay for the presumed benefits of this and other merchant HVDC projects, which could result in Missouri ratepayers paying for the project regardless of use by Missouri Utilities.”

On the issue of financial viability, Grain Belt has apparently recognized a need for additional revenue sources in order to bolster the viability of its Project.  Until now, GrainBelt’s revenue was to be derived solely from the sale of capacity on the line.  Now, as another means to raise revenue, Grain Belt is also offering to sell or lease an undivided interest in the ownership of the line itself.

Ms. Shine stated that the undivided interests would be a sale for the exclusive use of the line by the purchaser.  However, exclusive use is not a public use. While the issue is not ripe for a decision in this case, if Grain Belt sells undivided interests for all or a significant portion of the Project, the MLA contends Grain Belt would no longer be a “public utility” or serve a “public use.”