Yesterday, counsel for PATH filed a letter with the WV PSC stating that PJM discovered an error in the base case analysis used in the development of the 2010 RTEP.  Read the letter here.

PATH suggests another two-month delay while they cook up new need testimony to be submitted by September 14th. This would push the hearings out to March, 2011, and the decision date to July 29, 2011.

Whatever!  I've been waiting for them to suggest another delay to fix that crap they submitted as the basis for the "need" for PATH on July 8.  Didn't expect that they would panic and ask for a delay so soon, before the case even really gets rolling again. Every time PATH is losing, they will call a delay so that they can have another "do over". How many chances are they going to ask for to try to get it right?  Answer -- as many as necessary!  Interesting that PJM is willing to be their scapegoat this time.  PJM is really stretching themselves thin recommending PATH as the "best and only" alternative to fix long-term grid problems.  In fact, they have already stretched themselves so far that they have ruined their credibility with the public, the regulatory agencies, and their own members as well.

PATH is barely scraping along now -- someone please shoot it and put it out of its misery!

Is it time again already for the Allegheny Energy Earnings Call bag-o-fun?  Yes, indeed!  All quotes from the Q2 2010 Allegheny Energy Earnings Call   If you're unfamiliar with the earnings call, you're in for a treat!  This is where the power companies (in this case, Allegheny) try to sell themselves to their investors.  Everything is always superb!  Money coming in faster than they can count! Every project going according to plan and every plan on schedule!  Read one to see the way these guys talk so freely out of the other side of their mouth to a different audience.  If PATH wasn't a money-maker, would it even be worth mention in these calls?  Of course not!!

But, here's the $2.1 billion dollar question -- are these investors stupid enough to believe the lies they are told? Of course not!  And that, ladies and gentlemen, is where the humor comes in!

First, let's have a question from Daniele Seitz – Dudack Research Just a quick one. The PATH transmission line when do you anticipate construction to start and major expenditures would start?

Paul Evanson

Well, we just got the confirmation from PJM that June 1, 2015 is the date that they want it in service, in fact, no later than June 1, 2015. So, we have really focused a lot now on our filings or state filings.

Daniele Seitz – Dudack Research

So you don’t anticipate much expenditures for the near term? It will start in a year or two?

Paul Evanson

No. There will be some, and I think we have some of that spending laid out I believe in the…

Kirk Oliver

If you look at slide number 40, we have it laid out. I think we’re looking at, Daniele, about $40 million or $50 million this year just to give you an idea.

Paul Evanson

Yes, recently the Roseland line delayed because of the federal sighting, but I can tell you we’ve been very focused and diligent on that right from the beginning, back when the project first came up and we’ve been extremely sensitive to it. It’s very important in terms of sighting and we have it down to like there’s only 2.5 miles within federal boundaries within several boundaries within 276 miles on the entire project, and we’ve started that process back two years ago. So we think that our federal review is on track and shouldn’t cause any delay in meeting that June 1, 2015 date.

Do you think that Danielle already knows exactly when PATH's "need by" date is?  Of course she does.  She's waiting for Evanson to tell her about any anticipated delays or cost issues.  However, everything in Paul's world is going perfectly, despite the real truth that the PATH project is floundering badly and lately looking more like a project being shepherded through approvals by The Three Stooges.  It's like attending one of those glitzy-fake cocktail parties with all "the beautiful people".  In addition, I just can't get the image out of my mind of this in cartoon form, with Mr. Burns playing Evanson and Kirk Oliver as the eternal toadie, Smithers.  When Mr. Burns gets stymied and even Smithers can't feed him anything positive to say, he quite jaggedly changes the subject and begins telling Danielle a fairy tale about PATH's performance on the required Environmental Impact Statement Application (which won't be completed until the fall of 2012, btw).  I wouldn't call what happened several weeks ago in WV, VA & MD "focused and diligent".  Why doesn't Paul tell her that hundreds of citizens showed up in person (none of them in favor of PATH) and many hundreds or thousands more have submitted their comments in writing?  It would probably be akin to dropping a turd in the punch bowl to admit that PATH was caught and exposed for attempting to intimidate citizens at a federal public meeting.  In fact, their performance was so bad, it may have screwed the whole thing up beyond repair.  Don't worry, I'm sure Danielle Seitz of Dudack Research is more than capable of finding these things out on her own. Why else does she consistently ask these PATH questions every time?  Smart Girl!  Danielle knows...

Read more after the break

Great post on Calhoun Powerline about Project Mountaineer and transmission expansion.  Remember, Project Mountaineer was a gift to the Ohio Valley, coal-fired generator companies in exchange for choosing to join PJM between 2000 - 2004.  PJM is such a true, blue friend to its powerful members, they continue to use their RTEP as a "vehicle" (Allegheny Energy's word) to advance Project Mountaineer transmission lines.

The "need" for PATH was created with a bunch of robust lies (reliability issues, thermal violations and blackouts, oh my!)  Thanks to PJM's "transparency", the scheme is more than obvious and the stakeholders are starting to get restless.

More trouble for PATH on the horizon.

As if their heavy presence at the EIS Scoping Meetings for no apparent reason (they don't give a statement to the court reporter, they don't make useful comment at any of the meeting stations and only Mark Nitowski manages to talk to the media) isn't enough, AEP & Allegheny Energy personnel went home with egg on their face from the Purcellville EIS Scoping Meeting this evening.

Their piece de resistance was the clueless kid who took the mic during the public comment portion of the hearing (which was developed impromptu and not on the schedule until halfway through the first meeting in Harper's Ferry, therefore tonight's meeting was PATH's first opportunity to get a planned speaker signed up) and delivered a glowing endorsement of PATH as the answer to all our problems.  Not only did he play to a thoroughly disgusted audience, he also finished up to stoney faces and silence.

I believe he may have identified himself as affiliated with PATH's Virginia astroturf front group at the beginning of his little speech, which is entirely plausible since a representative of Charles Ryan Associates (PATH's PR and astroturf front group magicians) was attending his second night of EIS Scoping Meetings and got uncomfortably left behind to clean up the mess when the bigwigs scurried away, lest any unfortunate crumbs attach themselves to their trouser legs.  The Charles Ryan Associates representative stated that his purpose at the meeting was "to observe".  Not sure how much he observed from his seat on a bench outside the meeting room door, but we noticed him spending a lot of his time "observing" a video game on his cell phone.  I sure hope he stayed around long enough to collect that kid's carcass and give him his paycheck, because the last time I saw him he was being grilled by two of Winchester's finest.

Nobody in the room was fooled by this feigned performance, and that probably includes the Park Service, Forest Service and CH2MHill personnel.  Good job, Charles Ryan Associates!  Thanks for making what had been a great series of meetings to receive comment from the public uncomfortable for everyone.  Another bang up job! You're doing so much good for PATH's opposition, we should be paying you for it.  Oh, that's right... we are... every month in our electric bill.

According to the power companies, PATH was ordered by PJM.   Their hands are tied.  They are just doing as ordered by PJM.  Blame continually shifts to PJM as an "authority" tasked with maintaining grid reliability.  PJM pretends that its planning is "transparent" and for the good of the electricity-slurping public.  Here's a little transparent history of PJM, Allegheny & AEP's little scheme to enrich themselves by opening new markets for coal-fired electricity at the expense of PJM ratepayers:

We all know about Project Mountaineer, PJM's 2005 plan to increase west-east transfer of coal-fired electricity by 5,000 MW.  Project Mountaineer was hatched after Allegheny Energy, American Electric Power and other Ohio Valley coal-dependent generators joined PJM in the early 2000s.  Was there a scheme for these power companies to enrich themselves with the help of PJM's "transparent planning process" while PJM received the benefit of increasing its footprint?  Seems that way to me.

See Allegheny Energy's 2006 plan for the TrAIL line, which was conceived as a much different project than is now being built.  Their original plan was to include a segment to Bedington (Berkeley Co., WV) which would tie with a segment from Bedington to Kemptown, where they would build a new substation.  This part of the plan was carried over to the PATH project, and PATH was expanded to give a little gravy to AEP by feeding from their John Amos plant and increasing the planned capacity to utilize AEP's 765kV technology.  

In Allegheny's plan, "As conceived, Project Mountaineer would consist of one or more transmission system reinforcement projects to enhance the west-to-east transfer capability of the entire PJM Transmission System.  PJM envisioned its independent planning process, known at the Regional Transmission Expansion Planning Protocol as the vehicle for identifying a comprehensive plan for Project  Mountaineer."

So, the RTEP is nothing more than a "vehicle" to advance Project Mountaineer -- it has nothing to do with actual need, reliability or planning for the stability of the grid. The RTEP is a means to accomplish Allegheny's financial goals.

Allegheny used PJM's "vehicle" to propose a new transmission project completely in the AP (Allegheny Power) Zone, which would give them all the control and all the profits.

"Following PJM's announcement of Project Mountaineer, Allegheny Power (AP), a transmission owner within the PJM Region, began reviewing various transmission system enhancement opportunities within the AP Zone that would provide significant increases in the west-to-east transfer capability within the entire PJM Region and could be incorporated into PJM's Regional Transmission Expansion Plan (RTEP)".

Allegheny approached PJM with the "opportunity" for inclusion in the "vehicle".  It's not about increasing electrical demand, blackouts or congestion.  It's about increasing energy company profits and expanding PJM's footprint.

I guess there's a reason Allegheny Energy pays CEO Paul Evanson the big bucks ($67M per year) -- the old codger is psychic!  Or maybe the reality is that the fix has always been in for PJM to do their math backwards and come up with a problem for the answer they are given by Evanson and his counter-codger at AEP.  He knew over a month before PJM's latest RTEP was released what PATH's new inservice date would be.  You be the judge...


From Allegheny Energy's May 5th Q1 2010 Earnings Call:


Paul J. Evanson - Chairman, President and CEO: Well, the delay in PATH – well the determination of when PATH is needed in any particular year is done by PJM and have a separate transmission group, that that’s really what they focus on. And what they focus on really first foremost and almost in every way is reliability and when the violations of their reliability standards. So they look at that at the earliest movement and try to make sure it gets in before that movement is met. And the economic conditions changed dramatically from two years or so ago, two and a half years ago when it was first proposed, which has led to the delay. But we are looking forward to what their conclusion will be in June of this year. My own guess, my own personal guess is they’ll probably see a need in maybe 2015 or perhaps 2016, that’s my guess. That has to be on their very thorough, very complex analysis.

Get out your wallet... again!  Tomorrow your electric rates are going up again if you're an Allegheny Power customer.


Lately, rates have gone up every six months, and those are only the rate increases approved by the WV Public Service Commission and does not include the recovery of PATH, TrAIL, Susquehanna-Roseland and MAPP project costs and power company profits that happen every January.


Rate increases are happening with increasing frequency. Why?


Paul Evanson, Allegheny Energy CEO, Q1 2010 Allegheny Energy Earnings Call:


"...we reported that adjusted earnings excluding cost related to our proposed merger with FirstEnergy and unrealized losses on hedges were $103 million or $0.61 per share."

Interesting opinion piece in industry rag Electric Light and Power.  In the industry's greedy arrogance, we should be easily led, dismissed and ridiculed, but now emerges a vein of anger at our success.  Now they fight us.


"It's not the size of the dog in the fight, it's the size of the fight in the dog" -- Mark Twain

Despite PATH's subterfuge that PATH will benefit West Virginia's Eastern Panhandle and the tri-state area, new information recently released by PJM shows the true plan for the electricity transported by PATH.

PATH wants us to believe that the 765kV line will feed from the proposed new Kemptown substation into two existing transmission lines that currently cross the proposed substation site in Frederick County, MD.  If our grid is so "congested" and "overloaded", how are two smaller, existing lines supposed to take PATH's load? They're not.

PJM's true intention is to build an additional new transmission line out of the new substation in Kemptown which will connect with Emory Grove (MD) to Conastone (MD) to Peach Bottom (PA) to Keeney (DE) and ending in Salem (NJ).

It may not be the exact same plan PJM came up with in 2005 (see Project Mountaineer map here), shortly after American Electric Power became a member of their RTO, but it does get coal-fired power from the John Amos plant to New Jersey.  There are most likely future plans to add even more new transmission lines to take it north to New York City.

BG&E and PSE&G get to be the next beneficiaries to feed at the FERC rate incentive trough filled with the empty wallets of the 51 million ratepayers in PJM.

Why are West Virginia, Virginia and Maryland expected to sacrifice and pay for all of this expansion?

We have always maintained that PATH's electricity is intended for New Jersey.  Now PJM has provided us with proof of PATH's big lie.

There's more news from the WV4ReliablePower website. Find out what PATH PR agency Charles Ryan Associates is doing with your $2.1 million in "advertising expense".


We need some accountability for how the public's money is being spent.