Frederick News Post article about the upcoming hearing. Seems like nobody can resist taking jabs at Cannon's inane word choice in the request for rehearing. Eerie! Bring your ghost meter and EMF detector, we're going on a paranormal adventure Thursday night! Ooooh! Scary! :-)
The Frederick County (MD) Board of Zoning Appeals Rehearing on PATH's application for a special exception for their gigantic substation in Mt. Airy has been scheduled for this Thursday, December 16, at 7:00 p.m. at Winchester Hall in Frederick. No public comment will be taken, however everyone is encouraged to attend and show their opposition to PATH's whiny request for rehearing.
Frederick News Post article about the upcoming hearing. Seems like nobody can resist taking jabs at Cannon's inane word choice in the request for rehearing. Eerie! Bring your ghost meter and EMF detector, we're going on a paranormal adventure Thursday night! Ooooh! Scary! :-)
2 Comments
Big news! Today the staff of the West Virginia Public Service Commission filed a Motion to Dismiss the Filing as Insufficient or in the Alternative, Require PATH to Request a Tolling and Implement Further Case Processing Procedures.
In the motion, the staff asserts that certain developments pertaining to the status of the Mt. Storm-Doubs 500kV line, as well as other developments, make the current application incomplete. As a result, the Commission does not have all the information it needs to properly evaluate this project and reasonable alternatives. Therefore the Staff moves the Commission to either dismiss this case or require PATH to request a tolling sufficient to allow the Commission to implement further case processing procedures to assure a complete review of the application by the parties and the Commission. Essentially, the staff has also noticed the robust odor of "barnyard" coming off PJM's continued insistence that PATH is the "most robust solution to the reliability needs we identified", which flies in the face of PJM's approval of Dominion Virginia Power's filing for rebuild of the Mt. Storm-Doubs line. While PJM approved this rebuild, they are completely ignoring the increase in capacity the rebuild will provide in their modeling for the need for the PATH project. In addition, the staff believes that Dominion's alternatives to the PATH project that were filed earlier this year have not been given adequate consideration, and in fact the staff seems to be leaning toward Dominion's Alternative 1 as the only "solution" needed for at least the next 10 years. This solution will be much cheaper, will cause much less disturbance to the environment, and requires no acquisition of new rights-of-way (condemnation of property). Dominion's Alternative 1 will save the ratepayers millions, if not billions, of dollars in the long run. The cost of PATH's acquisition of land and land rights for their project are added to the ratebase, upon which ratepayers pay a return (in 2011 average of 50% equity at 14.3% and 50% debt at 6.64%). Items in the ratebase are subject to depreciation, except for land, which never depreciates, therefore subjecting the ratepayers to paying that return on land acquisition for eternity. Dominion's proposal will save us a bundle in long-term costs! The staff also mentions the MAPP line, which was recently resurrected in Maryland. The combination of the MAPP line and the Mt. Storm-Doubs rebuild leaves no reactive criteria violations, according to the staff's motion. The motion also questions PJM's treatment of other proposed alternatives to the PATH project. And here's my favorite part of the motion: "It is ludicrous to continue to move forward with the PATH project while major changes are being contemplated for critical transmission infrastructure that should be factored into assessment of the need for PATH." I think that about says it all! Please remember that this is only a motion -- the WV PSC Commissioners will be the ones who make the ultimate decision on the disposition of PATH's application in this state. The staff has asked for: "Staff moves the Commission (1) to dismiss PATH’s Application without prejudice; ( 2 ) permit for re-filing once a new analysis has been completed that includes all the recent developments;(3)order the Applicants to file updated testimony in regards to the economic and environmental aspects of this project, including a discussion of the need to rebuild the Pruntytown-Mt. Storm line. Alternatively, Staff does not object to proceeding with PATH’s pending Application if PATH submits a written document requesting to toll the statutory time line until such time as these additional filings can be made. Parties, including Staff and the CAD, will soon expend significant resources on expert fees and filing direct testimony. Accordingly, Staff asks the Commission to rule on this motion as expeditiously as possible." Now the real fun begins as we watch to see how the other two state commissions react. Will they join in kicking PATH while they're down? I hope so! No mercy! Journal article (and no, I didn't really say that -- substitute the word "hoping" for the word "before" and that's a lot closer to what I said) Frederick News Post (this article was part of a half-page spread that also featured a story about the PATH Formula Rate Preliminary Challenge -- see The Collection for link to that story) Yesterday I received notice that PATH has requested a reconsideration of Frederick County, Maryland's decision to deny the special exception for the construction of the gigantic substation. The date scheduled for the rehearing is Thursday, December 16 at 7:00 PM in Winchester Hall in Frederick.
My friends in Frederick have explained that this "reconsideration" will consist of the Board of Zoning Appeals reconvening to discuss their decision and take another vote. PATH's whiny list of why the Board should reconsider is long and winding, so let's see if we can shorten it up a bit. They think they presented enough evidence that the substation is compatible with the surrounding neighborhood and its impact would not be greater in this location than another agriculturally zoned location in Frederick County. They also think the Board's interpretation of the comprehensive plan and legal precedent is incorrect. Then PATH stoops to attacks on the two board members who voted against the substation. Board member Clapp apparently missed some of the hearing. Must have been a very small segment, because I never saw him missing when I was there, and that was the vast majority of the 25+ hours of testimony. According to PATH, Board member Sepe has a conflict of interest, is unprofessional and should have recused herself. People who live in glass houses shouldn't cast stones. Here's a link to what PATH filed. At Wednesday's PJM TEAC meeting, big cheese Steve Herling was asked about Dominion's Mt. Storm-Doubs rebuild project. He believes that Dominion cannot complete the project by 2015 and PJM's estimate is that the project won't be completed until 2019. I never heard a real reason for that opinion, but he said it "will become obvious after a couple seasons" that the rebuild won't be accomplished on schedule. The contradiction of PJM removing the Mt. Storm-Doubs line from their modeling auctions for 9 months of the year for the next 5 years beginning in 2011 vs. Herling's statement that it won't be completed until 2019 was brought up. Herling said they can't "put all their eggs in the basket until it is further along" and a bunch more Miss Othmar-type stuff. Another non-answer.
The majority of the Mt. Storm-Doubs line is located in West Virginia, with shorter lengths in both Virginia and Maryland. In the other two states, Dominion (or in the case of Maryland, Allegheny Energy) must go through the entire PSC application process to be granted a permit for the project. In West Virginia, however, Dominion does not need a certificate, just a simple ruling by the Commission. The WV PSC staff has recommended that such a ruling be issued. "Therefore, the Staff recommends the Commission enter an order finding this project in the “ordinary course of business.” Staff recommends the Commission enter such an order as soon as possible so VEPCO can start the necessary preparatory work that will allow construction of this project to start as soon as the TrAIL line goes into service in the spring of 2011." In the staff's recommendation, Earl Melton, Director of the Engineering Division is quoted as follows: "For Mr. Melton, the most complex thing about the project will be dealing with the tight time lines during the spring and fall of the year when there will be enough slack in the system to allow this line to be taken out of service. VEPCO will have to work closely with PJM to find those openings, however, Mr. Melton points out that PJM has already realized the critical need to have this project completed with the October 28, 2010 decision by the TEAC. Mr. Melton continues that he believes this project is extremely urgent and needs to proceed as quickly as possible once the TrAIL line makes it possible. On October 18, 2010, he inspected several structures of this line and he found the condition to be consistent with the pictures and descriptions provided in the petition. One factor he finds relevant not mentioned in the petition is the fact much of this line crosses the Allegheny Front and is subject to severe weather such as high winds and heavy ice loading. All of these factors lead him to believe this line needs to be replaced as soon as possible." If Dominion gets the green light from the WV PSC, they can get started right away on the vast majority of the project in that state while they wait for their Certificate in the other two states. Dominion feels confident that they can get this project completed by 2015. But wait, Herling thinks they can't and "VEPCO will have to work closely with PJM to find those openings". Does PJM intend to hamper completion of this project so that the need for their pet PATH project doesn't evaporate before 2015? Consider the opinion of the WV PSC's engineer that the structural issues could cause "catastrophic tower collapse". If PJM delays this project by playing its dysfunctional games, not only are they putting the grid at risk, but the lives and property of the landowners on whose property the currently deteriorated structures lie. Herling thinks these structures can withstand another 9 years of use simply to create a need for PATH. It's not about the reliability of the grid at all, it's about PJM's Dysfunction Junction politics. If this game continues to be played, perhaps the landowners at risk ought to take court action against PJM. Perhaps the electric customers dependent on the Mt. Storm-Doubs line should as well. Dominion also has other issues standing in its way when it comes to landowners. They need to clear up the issue of PATH's proposed shifting of the Mt. Storm-Doubs right-of-way and rebuild of portions of the line in two separate locations in Jefferson County shown on this map. If I were a landowner on one of these "rebuild" sections, I certainly wouldn't allow this project to proceed without the legal assurance that I would not be subject to another rebuild project within a short period of time to accommodate the PATH project. Dominion also has to contend with landowners who are suspicious and angry due to PATH's bungling of public relations and are also very sophisticated when it comes to transmission line projects. These folks aren't going to be gullible or naive and Dominion will have to treat them with honesty and respect if they want their cooperation. If Dominion can manage to jump these hurdles, they will prove Herling wrong. Although some may think 6 hours of travel time to attend a meeting that probably didn't last an hour is a waste of time, yesterday's trek to PJM's TEAC meeting proved invaluable from an observation standpoint. It's just as well that there wasn't anything particularly PATH-etic on the agenda, because analyzing the dynamics at work here was much more interesting.
What is PJM, why do their member utilities fear them, and why does PJM think they are invincible? We know PJM is a cartel of electric utilities who are tasked with managing the regional electric grid system. The idea of it may have sounded good on paper, but FERC has created a monster! Since corporations are reveling in their recently-granted personhood, let's treat them accordingly. After observing the way PJM and its members interact, I'm now seriously worried about the lights going out at any second while this dysfunctional little family gets lost in their destructive behavior patterns. PJM plays the role of tyrannical parent. The member utilities play the role of scared little children with varied levels of aggression. The tyrannical parent makes decisions based not on the good of the family as a whole, but as a reward system for the more aggressive of the children. These aggressive children receive their rewards with the understanding that they must remain in their subservient role to the parent, while simultaneously dominating the meeker children, in order to continue to receive the tyrant's approval. Dysfunction Junction, without compunction! PJM believes they answer to no one and have become bolder and bolder in their favoritism and illogical decisions. When an action that is obviously illogical to family outsiders is taken, the family closes ranks. The bolder of the meek, powerless children who are negatively affected by the action may ask an ineffectual question or two, but the tyrant is not to be questioned and does not even afford the courtesy of a proper answer. Silence ensues and the action is accepted and any opposition is swept under the rug. I observed one member utility ask several questions regarding actions favoring another proposed project over its own, only to be stonewalled by Herling, whose lips were moving, however nothing of substance was coming out. It sounded a lot like Miss Othmar here. The member utility finally gave up and suffered in silence. None of the other members voiced an opinion. Just because this method works for Herling in this venue doesn't mean it works in the real world the rest of us inhabit. There were many other instances where PJM's contradictions or illogical actions were questioned, only to be handled in the same dysfunctional manner. Specific rules or operational procedure that might curtail some of this dysfunction are not permitted to exist at PJM. Although lip service is given to creating some, I don't think anyone seriously expects that to happen because then the dysfunction would cease to exist, and it seems like both PJM and its members revel in their oppressive, screwed up dynamic. Why all these corporate "persons" are content to suck up to an unfair, hated tyrant instead of banding together to conquer their oppressor escapes me. I guess they have spent so much time in the company of their little dysfunctional family that being tossed a crumb or two on occasion while watching their favored siblings feast at the all-you-can-eat buffet is better than not eating at all. Dumb. And the end-use customers are the ones who pay for it all. Fortunately, Dysfunction Junction really isn't invincible at all and it seems that at least one of the citizen opponents has scented blood on the wind and has taken a particular interest. I'm going to pay it forward and say about this person... "I'm glad you're on my side!" This person also sees a lot of parallels between Dysfunction Junction and and this video. I agree! "The world is mine!" :-) Read the comments of PJM member company Exelon regarding PJM's inclusion of Dominion's Mount Storm-Doubs rebuild project in the RTEP.
Exelon makes perfect sense here, however the Dysfunction Junction known as PJM chooses to sweep another issue under the rug. Exelon correctly states that inclusion of this rebuild in the RTEP will socialize the cost of the project across the PJM region among those who will receive no benefit. They also accurately surmise that the rebuild of this line is due to structural issues and lack of on-going maintenance and periodic upgrade. If Dominion is allowed to let their infrastructure deteriorate to the brink of failure in order to socialize the cost and absolve themselves of the financial responsibility of maintaining their infrastructure, a dangerous precedent is set (dangerous for your wallet!) It would most likely start a landslide of utilities ignoring maintenance of their lines until failure is imminent in order to save on O & M costs and have ratepayers pick up the tab. So what the heck is Dysfunction Junction doing including this project in their Regional Transmission Expansion Plan? There's a whole lot of subversive deception going on at PJM and none of the member companies want to be the child who points the finger and declares that the Emperor is naked, but naked he is indeed! Perhaps if PJM included Dominion's entire Alternative 1 in their RTEP it would make a whole lot more sense for inclusion as, "expansion of existing facilities with capacity additions required to maintain reliability or qualify as market efficiency projects". However, PJM approval of Dominion's Alternative 1 would temporarily obviate the need for the PATH project, and PJM has just reaffirmed the need for PATH. Too many lies always catch up with their owners eventually and turn them into The Village Idiot. Congratulations, PJM! Remember the FERC hearing set on PATH's usurious return on equity of 14.3%? It seem that at least one Consumer Advocate (WV) is in the process of working out a deal (but refers to it with the euphemism "settlement") with PATH so that PATH does not have to go forward with the FERC hearing process.
It's more than obvious that PATH is going to take a hit here. They absolutely cannot sustain that ridiculous rate of return and there is no chance that creation of a new proxy group in today's financial climate will win them an even higher return on equity. In order to cut their losses, PATH wants to work out a deal with the other parties whereby PATH will agree to have their rate cut by a tiny increment rather than take the risk that they will take a larger cut at FERC. Your Consumer Advocate or Office of Peoples' Council (or whatever independent agency connected with your state's Public Service Commission) is supposed to be looking out for you -- your rights and your utility rates. That your representative would even consider going along with a deal is a perversion of the Advocate's mission. Some of these advocates are so used to rolling over and being content to be tossed a crumb now and again by the utilities making millions at the expense of those the advocate is supposed to protect, that they think a "settlement" is a win. These misguided advocates operate in their own little world, and the wishes of the consumers they represent never seem to enter into the picture. Forcing PATH to face the music is a much better course of action, IMO. Check with your advocate to find out if a deal is in the works and let them know how you feel. Someone needs to stand up for the rights of consumers. Guess it's a "do-it-yourself" project in West Virginia, and possibly other states as well. The Power Line has a great analysis of one of the first right-of-way purchase agreements that we have found between PATH and an owner of a large parcel of land in Jefferson County.
Prepared by the same attorney who is responsible for PATH's Option for Real Estate Sale and Purchase, this agreement also gives every legal advantage to PATH and strips rights from the landowner. The average citizen is not equipped to deal with the PATH land agent and attorney sharks who are taking advantage of their lack of knowledge. Be smart -- always demand to have your own attorney review any documents before signing. If you think you can't afford an attorney, reality is that you can't afford NOT to have an attorney when dealing with PATH. "Oh, what a tangled web we weave, when first we practice to deceive." -- Sir Walter Scott
PJM's house of cards is swaying precariously in a new wind that has begun to blow. PJM claims their planning process is "transparent", and I'm starting to agree. It's becoming increasingly transparent that PJM will continue to erroneously favor the greed-driven projects of their most powerful members, even when their own credibility is on the line. Seems like PJM doesn't even have enough intelligence to carry out the basic instinct of self-preservation. On December 1, PJM announced that the Mt. Storm-Doubs rebuild was approved, and also reaffirmed that the PATH project is needed. Huh? The press release states that the Mt. Storm-Doubs rebuild will increase the capacity of "one of the most heavily used transmission lines in PJM" by more than 60%. This capacity increase is not factored into the supposed "need" for PATH. Why not? A little too much transparency, boys? That's okay, PJM, we can clearly see that you're no longer making any logical sense or even bothering to create some pretext of "need" for the project. Apparently it's not just us citizens who see PJM bias -- the Consumer Advocates/Peoples' Council from eight different states (WV, MD, VA, IL, DC, OH, NJ and DE) have joined together to question PJM's recent actions. At issue here is the way PJM has been playing games with proposed alternatives to the PATH project. One such alternative, the Liberty Line, has now been rejected by PJM twice. The most recent rejection was based on a conceptual study prepared by Burns & McDonnell (conflicting interests since 1898!) Before we even get into some of the interesting conclusions the study reaches, let's talk about CONFLICT OF INTEREST. Burns & McDonnell is also a contractor working on the PATH project. How can they impartially evaluate a competitor to a project they are already working on? They can't. And the Consumer Advocates are pretty steamed up about that (and you should be too!) I'm sure you, dear ratepayer, are paying for this worthless study. The study prices the Liberty Line between $2 and 2.5 billion, compared to PATH's $2.1 billion. Where's the conceptual study that priced PATH, you ask? It doesn't exist. PATH has simply pulled its cost estimates out of its... hat, and PJM takes them at their word, no study needed. I have a sneaking suspicion that Liberty is overpriced and PATH is severely under priced. Apparently I'm not the only one. Couple of amusing things in the study: "...the Project would likely have several challenging issues to address associated with siting, real estate, permitting, and construction that could make it a complex and difficult project to permit and construct and thus could extend the schedule for the completion of the Project." "Following the collection of available data, Burns & McDonnell identified the major constraints and issues within the study areas. These major constraints and issues consisted predominantly of environmental and regulatory constraints. Environmental, social or regulatory constraints are areas where transmission line siting is impractical or less favorable for institutional or social reasons, or because the potential environmental impacts are considered excessive." "Risk factors that could delay the project duration are public opposition and organized opposition groups, state siting approval, the NEPA process, permit clearances and approvals, construction issues, and potential mitigation requirements. Several of these risk factors could affect the project duration significantly." "In addition, the timeframe and costs required to energize the line would likely be significant based on the involvement of three different states and 15 counties and the issues and constraints described above." "The following factors were identified and taken into account: Expected level of sophistication of landowners" "National Environmental Policy Act (NEPA) compliance for the crossing of the Appalachian Trail in Pennsylvania. The Appalachian Trail is managed by the NPS. Any federal agency that is being asked to issue a permit to an individual or company must evaluate the environmental effects of the permit decision under NEPA. The NEPA review process could apply to the entire project length." "Local zoning approvals from affected municipalities for a new substation at Kemptown." Yeah, like how they turned down PATH's application for a special exception. "Challenges associated with connecting to the new Kemptown Substation. The location of the Kemptown Substation is surrounded by residential development. A new 500-kV transmission line into this substation would likely require the displacement of a number of residences or reconfiguring the existing 500-kV line to minimize impacts to residences in the vicinity of the Kemptown Substation. There are also organized opposition groups, such as Citizens Against Kemptown Electric Substation (CAKES), that are opposed to the proposed location of the Kemptown Substation." "Public opposition. As a result of several recent transmission line projects in the area (Urbana Loop, PATH, and Mid-Atlantic Power Pathway (MAPP)), the public is highly educated about the Certificate of Public Convenience and Necessity (CPCN) process, and they have created organized opposition groups such as CAKES and the Sugarloaf Conservancy." And any of this differs from PATH how? Don't you just love how "sophisticated" we've all become? That's just a nice way of saying that the citizens aren't the trusting, uneducated, country bumpkins that PATH expected. Beware, unneeded transmission project owners, we're going to rip your head off and spit down your neck! This next bit is especially interesting, considering how PATH has been continually playing the FERC card with the various state regulatory boards. Just as I have always suspected, that card is really more of a joker -- one of the states ought to call their bluff... "The proposed Project falls within the counties included in the Mid-Atlantic Area National Interest Electric Transmission Corridor as designed by the Federal Energy Regulatory Commission (FERC). According to the Energy Policy Act of 2005, FERC may consider an application for a transmission line within this corridor. However, it should be noted that FERC authority can only be requested if the state does not act on an application for more than one year. In addition, FERC has never been asked to exercise their siting authority, which would likely create delays as the agency determines its review strategy. If the transmission line is processed under FERC siting authority, an Environmental Impact Statement (EIS) would be prepared for the entire transmission line." Looks like big trouble coming up at PJM and at the three state regulatory agencies for PATH as they try to backpedal out of all the lies they have told to the public about their "transparency". Hey, PJM, remember that old adage... "When you lie down with dogs, you get up with fleas"? Now PATH's fleas are making you dance. Let the heads roll where they may... For more about this issue, be sure to also read PJM Deceives State Officials About PATH Alternatives — And Gets Caught on Calhoun Power Line. Just a place to start storing news & blog links regarding the filing of the Preliminary Challenge.
Frederick News Post Leesburg Tomorrow Coal Tattoo (buried down in this long post - it's like a treasure hunt!) Frederick News Post (second, longer article not written exclusively from a press release) |
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
|