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Dirty No.Va. Data Centers Cause Failure to Reach Climate Goals

2/12/2024

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Regional utility FirstEnergy announced on Friday that it was abandoning its  interim 2030 climate goal.
After careful consideration and evaluation, in late 2023 we made the decision to remove our interim target to achieve a 30% reduction in GHG emissions by 2030 from a 2019 baseline since achieving it is not entirely within our control. 
And why is that, exactly?  Well, here's as close to the truth as FirstEnergy wants to get:
Achieving the 2030 interim goal was predicated on meaningful emissions reductions at our Fort Martin and Harrison power plants in West Virginia, which account for approximately 99% of our greenhouse gas emissions.
We've identified several challenges to our ability to meet that interim goal, including resource adequacy concerns in the PJM region and state energy policy initiatives. Given these challenges, we have decided to remove our 2030 interim goal. Through regulatory filings in West Virginia, we have forecast the end of the useful life of Fort Martin in 2035 and for Harrison in 2040.
The climate goal has been eliminated because FirstEnergy cannot reduce emissions at its Fort Martin and Harrison coal-fired power plants in West Virginia.  And why did FirstEnergy think it could reduce emissions in 2020, only to backpedal less than 4 years later and abandon its interim goal?  What changed in late 2023?  What are the PJM "resource adequacy" and "state energy policy initiatives" that made FirstEnergy abandon its 2030 goal?

​This!
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PJM's new transmission project designed to help import 7,500 MW of energy to Loudoun County Virginia's "Data Center Alley."  Virginia keeps approving new data centers and local utilities do not have enough electricity available to power them.  PJM designed a new long-distance extension cord that plugs the data centers into new sources of power beginning at the 502 Junction substation in southwestern Pennsylvania.  

Of course, substations do not generate electricity.  They serve as traffic circles to direct energy in different directions via high-voltage transmission lines.  PJM's new transmission snarl, err I meant to say MARL (MidAtlantic Resiliency Link), begins at 502 Junction substation and ends at the new Aspen substation in Data Center Alley.  But what generation sources are connected to 502 Junction that can be directed to Data Center Alley?  I'll give you two guesses...
Fort Martin and Harrison
That's right... the two generators at which FirstEnergy can no longer reduce emissions are directly connected to 502 Junction.
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The red lines on the map are existing 500kV transmission lines that connect Harrison and Ft. Martin directly to 502 Junction.  The new MARL project will take it from there, right to data centers in Loudoun County.

This is the reason FirstEnergy has abandoned its 2030 interim greenhouse gas goal.  In late 2023, PJM approved MARL.  PJM approved the project due to 7500 MW of new data center load and the retirement of 11,000 MW of fossil fuel generation in its eastern region.  Resource adequacy and state energy policy initiatives at work.

So, what does this mean?  It means that instead of reducing the greenhouse gas spewed into the West Virginia air from FirstEnergy's Ft. Martin and Harrison power stations, FirstEnergy is going to be increasing their carbon emissions.  All for benefit of No. Va.'s data centers and the selfish and destructive state energy policies of Virginia and its neighbors.

Northern Virginians who keep approving data centers despite knowing there is no way to power them without imports from West Virginia are directly responsible *COMPLICIT* in increased air pollution, health and environmental impacts caused by continued mining and burning of coal in West Virginia.

Why is this okay?

Don't turn away from this.  OWN IT.  Don't blame your elected officials or throw up your hands in despair.  Make your elected officials OWN IT.  Make them publicly say that it's okay to increase carbon emissions to power the data centers they approve.  Of course they won't.  FirstEnergy has just handed you a sledgehammer to stop data center sprawl.  Use it.

Every time you turn on a light switch in Northern Virginia, you are increasing carbon emissions.  That's right... the coal-fired power from West Virginia won't just power the data centers... it will power all of Northern Virginia.  Give your climate guilt a great big hug, it's going to be your constant companion for years.

PJM's new transmission plans to power data centers in Northern Virginia are going to increase carbon emissions.  End of story.
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PJM Charges Ratepayers in Other States for Data Center Extension Cords

2/11/2024

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Virginia has a problem with data centers.  It created tax exemptions to draw them in.  Northern Virginia is situated near a bloated federal government that needs a place to store all its data.  And "data center alley" was born.  It has since reached outlandish proportions, and more data centers are being approved every day.  Data center sprawl is a serious problem.

Perhaps the biggest problem for the largest concentration of data centers in the world is powering them all.  Data centers use huge amounts of electricity, and as new technology created more ways for data centers to burn electricity, it soon became impossible to power them with the electricity available.  Couple this with state "clean energy" policy that prohibits the building of any new fossil fuel generation, and you've created a recipe for disaster.

This disaster recently manifested as PJM's 2022 Window 3 transmission plan.  Regional grid operator and planner PJM Interconnection was tasked with finding a solution to the closing of 11,000 MW of existing fossil fuel generation in Virginia and Maryland combined with 7,500 MW of new data center load in Northern Virginia.  PJM did the only thing it knows how to do... create new electric extension cords across the region that will import electricity to data center alley from fossil fuel generators in other states.  The only two states in PJM that export electricity are Pennsylvania and West Virginia, where coal is still king.  Pennsylvania produces electricity mainly from natural gas and nuclear, with a significant amount of coal still in its mix.  West Virginia's electricity mix is over 90% coal.

The new extension cords are 3 new 500kV transmission lines pumping electricity to data center alley from Pennsylvania and West Virginia.  It's bad enough that the new extension cords will plow through communities in other states, expanding transmission easements and cutting new ones, but PJM also expects electric customers in other states to pay for a significant share of the cost of these new extension cords.  What do Pennsylvania and West Virginia get from this?  New transmission lines, property destruction and devaluation.  They don't get any electricity... that's all going to Northern Virginia.

When approving this destructive (and unlikely to actually happen) transmission plan, PJM selected the cost allocation scheme that spreads the costs of the projects as widely as possible across its region.  The thinking there is that spreading the $6B cost among as many people as possible won't be noticed by individual electric consumers.  If PJM allocated the costs solely to the causers of the new transmission lines (the state of Virginia) then the rate increases they cause will be very noticeable.  In fact, it may be so noticeable that businesses and residents may begin to leave Virginia for neighboring states where electricity is more affordable.

PJM is complicit with the State of Virginia to cover up its data center disaster by inflicting new transmission on other states instead of the state that caused it.  Sure, Virginia is being allocated a huge chunk, but not all.  Another huge chunk is still being spread among all PJM consumers as far away as Illinois, Indiana, Ohio, New Jersey, Kentucky, Tennessee, North Carolina, Maryland, Pennsylvania and West Virginia.  This is because PJM selected the cost allocation scheme that allocates 50% of the cost of the new projects to everyone in the region based on their peak load percentage from the prior year.  An area that uses a lot of electricity gets a bigger share, for instance electric customers in Northern Illinois are paying a larger share of this 50% than electric customers in Virginia that will actually use the electricity piped in on the new extension cords.  Why is anyone in any state other than Virginia paying for this new data center transmission?

The other 50% of the costs are allocated based on cost causation, with load areas at or near the data centers paying a higher percentage.  However, the load areas near the data center are enormous.  The Dominion zone where the data centers are being built also consists of customers in all parts of Virginia, plus some in North Carolina.  The Allegheny Power zone contains customers at/near the data centers, but it also spreads to cover a huge chunk of West Virginia and Pennsylvania.  Why are consumers hundreds of miles from the data centers paying so much money to build extension cords for Virginia's new data centers?  This isn't fair.

PJM's cost allocation schemes are part of its FERC-approved tariff.  However, PJM must receive FERC approval for each individual collection of transmission projects to ensure they have chosen the correct cost allocation scheme for the projects.  PJM filed to spread the costs across the region back in January, which opened a 30-day comment period.

While lots of entities intervened in the FERC docket for this cost allocation, only 3 comments were received.  That's right... only 3 entities thought this was unfair.  Two of them are residential ratepayers, and the other is the Maryland Office of People's Counsel.

I filed these comments.  I asked FERC to open an investigation into the justness and reasonableness of PJM's cost allocation and took the position that the "clean energy" policies of Virginia and Maryland caused the retirement of 11,000 MW of baseload generation in their states.  Also, only Virginia is responsible for the 7,500 MW of new data center load.  West Virginians should not be paying for these new transmission lines.  Being the "power house" for the electric supply for Virginia's data centers ties West Virginia into many more years of coal-fired electricity production.  Even if West Virginia wanted to close those old, dirty plants, they cannot because Virginia needs the power for their data centers.
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Pennsylvania electric consumer Barron Shaw filed these comments.  Barron's comments are similar and underscore the way Pennsylvania and West Virginia are being used to power some of the wealthiest companies in the world.  People in Pennsylvania and West Virginia get little to no benefit from these companies or their new extension cords and will actually end up paying higher power prices in their own states as all the "cheap" electricity is sucked out of their own states to power a wealthier economy in Northern Virginia.  It's basic supply/demand.  Plenty of power makes cheap electricity prices.  When so much power is exported that electricity becomes scarce, prices rise.
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Those two comments are probably understandable to the average reader.  However, the Maryland Office of People's Counsel also filed comments and expert testimony purporting that PJM picked the wrong allocation scheme and should have used the one that allocates all the costs to the state responsible.  PJM's other cost allocation scheme is called the "State Agreement Approach" and is used when a state agrees to shoulder the entire cost of transmission made necessary by its public policies.  SAA has been used for New Jersey's offshore wind planning.  PJM planned new transmission to support NJ offshore wind, and NJ agreed to pay for it.  Maryland OPC believes PJM must break down the suite of transmission projects to determine which ones are for other reasons, and which ones are for the data centers.  Once this breakdown is made, Virginia should be charged for the entirety of the data center portion.  Maryland's filing is probably a hard read if you don't speak FERC though, so read at your own risk.  It may seem like you're reading a foreign language.
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Now it's up to FERC to decide... should electric consumers in other states be charged for Virginia's data center extension cords?  Maybe if Virginia had to shoulder the entire cost of its data center debacle it would have to realize that approving a whole bunch of new data centers comes at a cost.  Outrageous electricity prices in Virginia are the consequence of out-of-control development.  PJM is helping Virginia avoid the true cost of its policies and shuffling costs off onto other states that had no part in approving the data centers and certainly will not see any benefit from them.  PJM also selected new transmission projects that put most of the burden on other states.  PJM could have selected the proposal that kept new transmission lines in Virginia by connecting to AEP's 765kV transmission system west of Richmond.  But it did not.  PJM is complicit in Virginia's irresponsible energy policies and therefore responsible for the energy crisis that is the logical result of continued data center development.  Why, PJM, why?  

PJM won't be successful in getting all these new transmission lines built in other states, and certainly not by their projected "need" dates in 2027.  What then?  Will the lights go out?  PJM made the wrong choice and we're all going to have to pay.
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The Big Transmission Lie

1/16/2024

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As part of the "energy transition" big green, big government, and the electric industry have been promoting an overwhelming need for new high-voltage electric transmission.  The message goes like this:  we need more transmission to move electricity from new renewable energy generators (solar and wind) to big cities that "demand" more renewable energy. 

That message is pure propaganda.

The "energy transition" is squeezing existing fossil fuel generators financially and many are shutting down.  This phenomenon is caused by federal taxpayer-funded subsidies for renewable generators and state/local energy policy that requires your electric company to cut its carbon to zero by a certain date.  Government policy has finally been successful in forcing the closure of fossil fuel electric generators.  Perhaps this is a good idea, environmentally, but it absolutely doesn't work to keep the lights on.

One of the biggest problems is that new renewable generators are not coming online in time to replace closing fossil fuel generators.  Instead, we just have less generation.  The liars point to regional interconnection queues to demonstrate that thousands of megawatts of wind and solar are waiting patiently to connect to the grid, and blame grid operators and utilities for holding up their connection.  Except this is just another lie.  Generators in the queue have not yet been built and may never be.  Vast numbers of generators drop out of the queue before constructing anything, even more now that the government has completely hosed up the supply chain.  

When big, baseload fossil fuel generators close, there is often nothing in the state or locality to replace them.  Regional grid operator PJM Interconnection is struggling to replace over 11,000 MW of closing generation.  The continuing closures keep pushing our electric grid further and further to the edge.  Closure of the last of Maryland's coal-fired electric generators causes widespread grid impacts that can destabilize the grid and cause power outages.  But does Maryland care?  Not really.  Maryland leaves replacing the retiring generation to PJM and other states.  Maryland is an energy parasite.  Maryland's energy policies are causing unreliable electricity for everyone in the region.

PJM is also struggling with a 40% increase in electric demand caused by Virginia's out-of-control approval of new data centers.  Data centers use incredible amounts of electricity that cannot be satisfied with variable forms of renewable energy like wind and solar.  Data centers need 24/7 on-demand electricity, even after dark and on calm days.  The capacity factors for renewables are much lower than fossil fuels.  While fossil fuel generators can stockpile fuel and be prepared to run when needed, renewable generators only run when nature makes their fuel available.  Therefore, you'd need many more renewables than fossil fuel generators to maintain reliable power.  The big lie pretends that if we only build transmission to connect everything then some renewable generator, somewhere, will be producing electricity.  But it won't be producing enough to replace everything else that isn't producing.  Pretending that is so is an unproven fantasy, and one we engage in at our own peril.  The cost of new generation and new transmission to connect it all is also going to make electric bills skyrocket.  The liars say that renewable generation is cheaper than fossil fuel generation, but they don't tell you that's because of government subsidies, and they also don't add in the cost of all that new transmission needed to connect all the renewables.  Unsubsidized remote renewables plus transmission is more expensive than existing fossil fuel generation that relies on existing transmission.  Fact.

This whole lie has been spoon fed to a trusting public for years.  But what happens when the largest grid planner in the country approves a new transmission expansion plan?  Is it connecting renewables to load using new transmission?

NO.

PJM's recently approved transmission plan replaces closing fossil fuel generators, and increases electric supply for new data centers, by connecting these areas with existing fossil fuel generators in other states.  This isn't about the "energy transition"; it's going backwards to increase the use of coal and other fossil fuels from states without impossible clean energy goals.

PJM's MidAtlantic Resiliency Link, or MARL, directly connects the data centers in Northern Virginia to over 10,000 MW of coal-fired generation.  The MARL will enable the export of electricity produced at Ft. Martin (1,100MW), Harrison (2,000MW), Long View (860 MW), Mitchell (1,600 MW), Cardinal (1,800 MW), Sammis (1,700 MW) and Mt. Storm (1,700 MW).  Wind, solar, biomass and hydro in this area add up to less than 10 MW.  It is indisputable that the electricity carried by MARL will be overwhelmingly created by burning coal.

When will the environmental groups and people who will use this new supply of dirty power wake up and object?  Transmission divorced from its source of power is a giant lie.

While Maryland sits around playing "victim" of its dwindling power supply, Virginia is planning a slew of new legislation supposed to make its data center problem "better."  However, none of Virginia's legislation addresses the REAL problem -- the generation of electricity.  Virginia's legislators try to pretend that electricity comes from new transmission lines.  
It would also require the SCC to evaluate current rate structures to see if transmission project costs linked to data centers are being fairly applied or are being spread too widely among the broader customer base.
“One of the benefits of data centers is how much money it brings to a locality,” Subramanyam said. “And we like that, but I also want to make sure that the infrastructure needed to power those data centers, that those costs are reasonable to ratepayers and are not essentially defeating that purpose of the data centers, which is to be an economic boon for a locality.”
Transmission lines are nothing but giant extension cords that are not plugged in.  It is only when the transmission line is connected to the generator that it supplies electricity.  Looking at transmission while ignoring where the line plugs in is also a giant lie based on denial.  Of course, it is a convenient lie for Virginians who want it all... they want the tax money data centers bring, but they don't want to host the infrastructure necessary for those data centers to operate.  Attempting to shift the cost of new interstate transmission is a tricky puzzle because interstate transmission rates are a federal issue.  While Virginia could direct its electric companies to allocate more costs of Virginia's portion of new transmission to certain rate classes, it cannot do a thing about all the transmission costs being allocated to the 13 other states in the PJM region.  As well, data centers most likely don't have their own rate class, so any shifting of costs would also impact other industries in Virginia.  This whole cost shifting thing is not solvable at the state level.  Virginia needs to stop lying to everyone and trying to have it all.

If Virginia really wanted to take responsibility for its data center problem, it would deny any new data centers that did not have a firm power supply from a Virginia generator.  Building new generation near the data center load is not only more reliable, but it's also cheaper than building hundreds of miles of new transmission to existing coal-fired power plants.  Does Virginia think those coal plants in other states are going to operate forever?  At some point, those aging plants are also going to close, and then what good is Virginia's extension cord when it's not plugged into anything?  Are we all being forced to sacrifice for a new transmission line that may only be useful for 10 years or so?  It's going to take more than 10 years to get it permitted and built!

Solution:  Require Virginia localities that want to approve new data centers to also approve new power generation to support that load in the same locality.  If that happened, data center building in Virginia would come to a screeching halt.  Virginia doesn't want to shoulder the burden of providing electricity to the data centers that are increasing its tax base.  Citizens of other states, such as West Virginia, want to carry your burdens even less.  Stop being a parasite, Virginia!

When you hear the word "transmission" remember that it is NOT for the "energy transition" and that it cannot be divorced from the power it transmits.  Virginia needs to own the fact that is is profiting off the misery of other states and increasing carbon emissions.  And it's not just the data centers that will be using coal power... everyone in Virginia will now be using a lot more coal power from West Virginia, courtesy of the new MARL transmission line.  Own it!
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Maryland Clean Energy Plan Relies on Dirty Imports

1/7/2024

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Maryland has ambitious climate goals for 60% reduction of greenhouse gas emissions by 2031 relative to 2006 levels, and to attain a net-zero economy by 2045. Maryland’s plan, just like Virginia’s, can only apply to power generation within the state. Maryland is poised to eliminate coal generation within its borders with the upcoming shutdown of the last three remaining plants, Brandon Shores, Wagner and Warrior Run, already announced to happen in 2025.

​But does that eliminate Maryland’s reliance on coal to keep the lights on? No, it doesn’t. Maryland already imports more than 40% of the energy is uses from surrounding states. Maryland’s plan calls for significant new imports after all coal-fired generation in the state retires.
Imported electricity from surrounding PJM states makes up over half of the electricity demand in Maryland in 2031 and contributes to over 95% of the remaining emissions in the power sector. In this pathway, although Maryland achieves its renewable and clean energy targets for in-state generation, the rapid expansion of solar and wind from current levels in this scenario is not sufficient to meet the growth in electricity demand from end-use sectors and to make up for reductions in natural gas generation. This means that Maryland must also increase imports from other states.”
That’s right... in order to keep the lights on in Maryland, it must import staggering amounts of electricity from other states in the region, including West Virginia (91% coal) and Pennsylvania (predominately natural gas and nuclear). There’s no invisible barrier that prevents downwind emissions from Pennsylvania and West Virginia from fouling Maryland’s air. Maryland is a filthy parasite.
Maryland has historically dealt with its failure to build enough of the clean energy it loves by filing lawsuits to force the shut down of dirty generation in other states.
“The petition asks the EPA to issue a finding that 36 electric generating units located in Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia are in violation of the prohibition of 42 U.S.C. § 7410(a)(2)(D)(i), commonly referred to as the “good neighbor provision.” The petition alleges that nitrogen oxides emitted by these units significantly contribute to Maryland’s nonattainment, or interfere with its maintenance of certain National Ambient Air Quality Standards (“NAAQS”)”.
Maryland admits that it has no hope of building enough clean energy generators to power its own state. Why, then, does it continue to shut down power generators without a viable plan to replace them?

The generators are shutting down because of a settlement between Sierra Club and Talen Energy that was the result of a lawsuit. Neither Maryland, nor regional grid operator PJM Interconnection was party to the lawsuit. They just got left picking up the pieces to make sure the lights stay on. Maryland seems to be doing nothing except hoping for more solar, storage and offshore wind to offset a portion of Maryland’s energy deficiency. This is not realistic. Offshore wind has taken a beating recently. Maryland’s big project has recently been paused and is in danger of being cancelled. 

But Maryland chooses to bury its head in the sand and push its responsibility to keep the lights on to regional grid planner PJM Interconnection. It’s up to PJM to keep the lights on despite Maryland’s electric suicide plans. PJM employs the only tool it has... new transmission to Maryland from surrounding states with excess fossil fuel generation. PJM seems quite pissed about it too, judging from its recent letter defending against Maryland’s attacks on who will pay for the new transmission. 

And then you’ve got Sierra Club, jumping in to shift the blame and telling Maryland what PJM ought to do about the situation Sierra Club has created with its lawsuit against coal-fired generators. Sierra Club thinks PJM should just sit back and indulge in the fantasy that the lights will stay on because Sierra Club thinks they should. Sierra Club doesn’t have a realistic plan, but it doesn’t want to take any blame for what it has done. 

Who is running the state of Maryland? Elected representatives or Sierra Club? Meanwhile, electric rates will skyrocket and Maryland will be using more coal-fired electricity than ever. This isn’t an energy transition and it’s not helping the environment. In fact, Maryland seems to be going backwards, put pretending that is is “clean”.
Maryland, just like Virginia, is nothing more than a filthy parasite. But the parasitic “clean energy” policies of Maryland and Virginia aren’t just hurting Maryland and Virginia. The misery caused by their incoherent energy strategies is spreading to other states. West Virginia will mine more coal, burn more coal, and transmit more coal-fired electricity to Maryland and Virginia via new high-voltage electric transmission lines. New transmission lines take property from residents of other states using eminent domain in order to make way for the new lines. And that’s just the physical impacts, residents of other states will also have to pay for the new transmission because Maryland and Virginia’s parasitic energy policies threaten reliability of the entire PJM grid, stretching as far west as Chicago, and as far south as Tennessee.

We cannot continue on this way and package this disaster as a beneficial transition. When the rubber meets the road, state clean energy policies are destroying electric reliability and affordable electricity for everyone. 
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Lessons from a Bad Omen

12/20/2023

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The Potomac-Appalachian Transmission Highline, or PATH project died yesterday.  It was nobody's friend at the end.  I don't think anyone is going to miss it, even PATH itself.  It's been an albatross around everyone's neck, including mine, ever since FERC decided to second-guess itself on the matter in 2020.

An uncontested settlement was filed at FERC on November 17 that created a lump sum refund for PJM ratepayers of $9.5M.  The refund came as a result of the DC Circuit Opinion back in 2021 that determined PATH's advocacy and advertising costs should not have been collected from ratepayers.  Also included in the lump sum was a final accounting for money due under PATH's formula rate.  The settlement also provides for the cancellation of PATH's formula rate and cancellation of the companies themselves.  In several months, PATH will be nothing but a bad dream and a lightness in your wallet.

Because FERC had failed to act (again) on the DC Circuit remand and a paper hearing FERC opened on PATH's return on equity in 2020, the parties to the long-running formula rate and abandonment cases took it upon themselves to ink out a deal and present it to FERC for approval.  FERC allowed PATH to begin collecting money for its project beginning in 2008, and it won't stop collecting until 2024.  That's 16 years.  Much of that time came courtesy of an overworked and tone-deaf FERC simply ignoring the issues PATH created for years on end.  Two years to grant our formal challenges, 3 more years to get them to hearing, 2 more years to issue an order, 3 more years to grant rehearing and do a 180 on FERC's first decision, only a year at the D.C. Circuit Court of Appeals straightening that out, and then 2 more years before the settling parties, including yours truly, finally pulled the plug to short circuit another long period of waiting for FERC to act.  To its credit, FERC jumped right on the settlement when it was presented and approved it yesterday, just a mere month after it was filed.  But why did it take us doing FERC's job for them to get this resolved?

Yesterday, a public shaming of PATH, utilities, PJM, and FERC itself came courtesy of FERC Commissioner Mark Christie during the monthly Commission meeting.  You can watch it here beginning at minute 13:48 and ending at 18:24.  Just five minutes of your time to get the satisfaction you've been seeking for 16 years.  I love a happy ending like this!  PATH was a terrible idea that has caused harm to consumers.
Commissioner Christie also issued a written statement to append to the Commission's Letter Order approving the PATH settlement.  You can read it here.
Christie used PATH as a reason to take issue with FERC's overly generous incentives, formula rates, and long-term planning for transmission that is purposed to serve needs that never materialize.

Commissioner Christie has been on the warpath against certain overly-generous FERC incentives, issuing strongly worded statements in 13 cases over the past 2 years (all footnoted in yesterday's statement).  He pointed out that FERC has opened several proceedings to investigate and change the Commission's incentive rules since 2019, but still has not managed to conclude those proceedings (PL19-3, RM20-10).  Christie also noted that the Commission proposed discontinuing the CWIP incentive in its also pending Rulemaking on Transmission Planning (Docket RM21-17).

A highly politicized FERC means the agency can't get anything done and has found itself at a standoff over many issues over the past 8 years.  Commissioner Christie stands alone as the most consumer-focused Commissioner FERC has ever had.  He has tirelessly fought for consumers and will continue to do so.  Commissioner Christie came to FERC from the Virginia State Corporation Commission in 2021, and will serve until 2025.  We need more commissioners like Christie, who have a history of serving at state utility commissions, and less Commissioners from the political and special interest realms that have dominated appointments over the past 8 years.  FERC needs to go back to its  function as an impartial regulator, not a political vehicle for the policies of the administration in charge.  Sadly, I don't see things changing much in 2024.  

Commissioner Christie used yesterday's PATH settlement as a lesson and a warning, referring to it as an "omen" of more bad things to come if FERC's policies are not reformed.  He used PATH as an example of how these different policies come together to create zombie projects that can pick ratepayer pockets for decades.  According to Christie, PATH was originally part of Project Mountaineer, a PJM scheme to import electricity to eastern load centers from the Ohio River Valley's massive fleet of coal-fired generators.  Once PJM approved PATH and added the project to its regional plan, that turned on the money spigots.  Thanks to FERC's overly-generous award of every incentive possible and its use of formula rates, PATH began collecting its costs from ratepayers in 2008, during its development and permitting stage.  The Commission's policies allowed PATH to continue to collect its costs during the long period between PJM's approval and state regulatory approval.  Although PATH never received any state approval, and nothing was ever built, its formula rate continued to recover costs from consumers, even after PJM abandoned the project in 2012.  PATH is still collecting a cool million (or more) from consumers every year to this day.  The Commission's approval of the settlement yesterday shuts off the money spigot... finally.

Commissioner Christie cautioned against making long-term transmission plans based on today's generation choices. PATH demonstrates that those choices can change quickly, although the transmission projects set in motion to achieve them cannot.  It was wise advice to a Commission that is poised to pass new long-term transmission planning rules in 2024 based on today's generation choices of wind and solar.  The Commission needs to think carefully about saddling consumers with the cost of new transmission that could become obsolete before it is even built, such as PJM's recent slate of projects for the purpose of importing fossil fuel electricity to Virginia's data centers from the Ohio Valley.  PJM has acknowledged that new wind and solar additions are not keeping up with fossil fuel generator retirements in its eastern regions, but yet the generators keep closing and the data centers keep being built.  Something has to change, or the lights are going to go out.  PJM chose to approve a bunch of new PATH projects from the west, including the NextEra/FirstEnergy project from southwest Pennsylvania to Loudoun County.

We should all heed Commissioner Christie's warning, and support needed changes to FERC's incentives and transmission policy choices.  A group of consumers filed comments on FERC's transmission planning rulemaking back in 2021.  Check out the discussion of the PATH project beginning on page 21.
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This is the same history lesson Commissioner Christie taught yesterday.  Christie said the PATH debacle has cost consumers nearly a quarter of a billion dollars over the past 15 years... all for nothing.  Christie quoted what Willy Loman’s wife Linda said in Death of a Salesman, "attention must be paid."  Let's hope proper attention is paid to the demise of PATH.  I, for one, won't miss it.  It frees up my time to pay attention to things ahead, such as the new PATH-like projects recently approved by PJM.

Let the funeral dirge play... we beat you, PATH.  We beat you BAD.
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How Transmission Lines are Routed

12/18/2023

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New transmission lines are routed by utilities using an extensive process.  The actual proposed route is unlikely to resemble preliminary maps created by PJM Interconnection, or Piedmont Environmental Council.  PEC simply laid PJM's generalized maps over an interactive map with actual detail.  These maps may have shown transmission lines cutting through homes, historic districts, and other valuable assets.  That's unlikely to happen when actual proposed routes are released by the utilities building the MidAtlantic Resiliency Link (MARL).

So, how DO utilities develop proposed routes?  Here's a look at how they developed the proposed routes for the proposed, but never built, PATH transmission project 15 years ago.  Utilities still use the same process today.
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Certain lands and structures are avoided.  Here's a list:
The Routing Team developed specific routing criteria in identifying, evaluating, and selecting routes, attempting to minimize:

Route length, circuity, cost, and special design requirements.

The removal or substantial interference with the use of existing residences.

The removal of existing barns, garages, commercial buildings, and other nonresidential structures. 

Substantial interference with the use and operation of existing schools, existing and recognized places of worship, existing cemeteries, and existing facilities used for cultural and historical, and recreational purposes.

Substantial interference with economic activities.

Crossing of designated public resource lands such as national and state forests and parks, large camps and other recreation lands, designated battlefields or other designated historic resources and sites, and wildlife management areas.

Crossing large lakes and large wetland complexes, critical habitat, and other scarce, distinct natural resources.
​

Substantial visual impact on residential areas and public resources.
While trying to avoid those things, the utility must also take these safety and engineering considerations into account:
Avoid double-circuiting or crossing existing 765 kV lines.

Do not parallel existing 765 kV lines for more than 1 mile in any particular location.

Minimize the crossing of 345 kV and 500 kV transmission lines.

Minimize paralleling corridors with more than one existing 345 kV or 500 kV circuit.
​

Maintain 200 feet of centerline-to-centerline separation when paralleling existing 345 kV, 500 kV, and 765 kV transmission lines.

Maintain 150 feet of centerline-to-centerline separation when paralleling 138 kV or lower voltage transmission lines.

Minimize angles greater than 65 degrees and sloping soils more than 30 degrees (20 degrees at angle points).

Do not triple-circuit lines of
345 kV or greater voltage. 
Of course, it's impossible to avoid everything in the first list.  The second list consists of engineering and safety standards and cannot be changed.  Therefore, while the utility may attempt to avoid your home, it may not be able to avoid your property.  Instead of going over top of your home and making it uninhabitable, they may go 200 ft. from your back door.  Might as well have taken your entire home, right?  I urge you to read this report carefully so you can get a feel for the things that can change transmission line routes so that you are well-armed when MARL holds public meetings in your area to present its initial proposed routes and get your feedback.

Something interesting in this report is the claim that "paralleling" existing transmission lines is somehow preferred... as if the people who live with them won't notice another gigantic transmission line across their property, or simply won't care.  Think about it... if you are unlucky enough to have a transmission line routed through your backyard, would you welcome another one?  Of course not!  A new idea has been formulated since the PATH project called "energy justice."  Energy justice means that we cannot keep forcing more and more energy infrastructure on the same people.  These unlucky people have already "taken one for the team" by hosting a transmission line (or power plant) nearby.  Isn't it someone else's turn?  Inherent in this status quo is that objectionable infrastructure projects historically end up in the backyards of populations at a disadvantage.  They are not as able as other more fortunate places to fight back and win.  Therefore, the disadvantaged communities get the infrastructure thrust upon them time after time.  This is not only unfair, it is morally reprehensible.  We ALL deserve to live safely and happily on our own property.  Nobody is a "throw away" to be ground down under the boot heel of "progress."

Another problem with paralleling is that homes and communities have been built up around old transmission lines that have been in place for decades.  In some places, the development is so thick that paralleling causes the taking of improvements made just outside the right of way, whether it is a shed, barn, fence, pool, swing set for the kiddos.  It also can include land the homeowner is using for a well and/or septic system.  None of these ordinary residential land uses are compatible with transmission easements and will have to be removed.  If a home's water and sewage disposal is made unusable, that can make the home uninhabitable.  Paralleling is an idea that needs to die.

Also interesting in this report are the routes where the utility proposed tearing down an existing transmission line and rebuilding it on new structures that include both the old circuit and the new one.  The unfortunate part of that situation is that the easement must always be expanded to house the bigger structures.  This is exactly what FirstEnergy is planning to do with its portion of the MARL -- tear down an existing 138kV line on wooden poles less than 100 ft. tall that is situated on a 75 ft. wide easement, and replace it with a 500kV/138kV 200 ft. tall double circuit on big, new lattice steel towers.  The existing easement must be expanded to accommodate this new line.  

How much?  Well, that seems to be mired in layers of murk.  When NextEra originally proposed the MARL, it said it could do this amazing rebuild with only 30 additional feet of right of way.  30 added to the existing 75 equals 105 feet.  No way they are putting this double-circuit monstrosity in 105 feet, right next to a parallel existing 500kV line.  It doesn't even meet safety code.  So, NextEra was either ignorant of the width of the existing ROW, or simply making things up in order to make its project more likely to be selected by PJM.  However, PJM decided to give that rebuild section to incumbent line owner FirstEnergy to rebuild its own line to include MARL.  FirstEnergy has not yet announced how much it would need to expand the existing ROW.  We're in the dark on the rebuild section.  However, when routing PATH 15 years ago, FirstEnergy had this to say about expanding that 138kV ROW:
In these cases, the existing transmission corridor already runs through theses areas, and in order to keep the height of the structures lower, the Applicant would work with the holders of these easements to modify them in order to acquire approximately 105 feet of additional ROW. 
PATH proposed expanding the existing 138kV easement in Northern Loudoun by 105 feet.  105 plus the existing 75 feet comes to nearly 200 ft.  200 feet is the standard easement required for a 500kV line like MARL.  I guess we can expect that FirstEnergy is going to ask landowners for another 105 feet of easement for the 36-mile section stretching from Frederick County, VA to the point in Loudoun where the line turns south towards Waterford.  This includes the section in Jefferson County, WV.  If you live along this stretch, you may want to measure an additional 105 ft. from the edge of the existing ROW to see how much of your property is going to be gobbled up by expanded ROW, and how much closer it is going to be to your home.

It is our job to educate ourselves if we're going to be successful in stopping the MARL.  Taking a look at how utilities actually route transmission lines is the next logical step.
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NextEra Files for Transmission Rate Incentives for its MARL Project

12/16/2023

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On November 22, NextEra filed an application at FERC to be granted certain transmission rate incentives for its MidAtlantic Resiliency Link, or MARL transmission project.  Of course, we know that the PJM Board of Managers didn't approve the MARL project until December 11.  But somehow NextEra was so certain it would receive the assignment that it felt free to apply for incentives for its proposed project ahead of time.  And let's just leave that fact on the table to contemplate.

Here's a link to MARL's filing.  It's huge, but you may want to only pay attention to the first 17 pages and the supporting testimony... for now.  The weird-looking multi-page tables appended at the end of the filing are MARL's formula rate.  This is how MARL determines how much to charge ratepayers for the project.  The ones attached to this filing are blank, but MARL will be making future filings with the numbers filled in.  That's a whole different process that perhaps we'll examine in the future.  The request for incentives is enough complicated crap for today's menu.

FERC's transmission incentives -- a long, complicated story.  Pull up a chair and get a cup of coffee, you're going to need it.

Back in 2005, Congress decided that not enough electric transmission was being built.  They reasoned this was what caused the 2003 Northeast blackout (I beg to differ, but that's a whole different blog for another day).  Congress passed Sec. 219 of the Energy Policy Act directing the Federal Energy Regulatory Commission to establish, by rule, incentive-based rate treatments to promote capital investment in electric transmission infrastructure.  Over the course of several proceedings, FERC developed a number of incentives to financially reward and protect utilities who undertook new transmission projects.  The incentives have been looked at several times since, with the most recent Notice of Proposed Rulemaking issued in 2020.  Although hundreds comments were filed by regulators, utilities, special interest groups, and consumers, FERC has not yet acted.  That docket, RM20-10, is still sitting around collecting dust.  No one seems to find this more frustrating than FERC Commissioner Mark Christie, who finds himself obligated to approve them every time, but issues virtually the same opinion every time that several of them are unjust and unreasonable and need to be reformed.  FERC is at an impasse.

FERC's incentives include ROE adders, hypothetical capital structure, pre-commercial cost recovery, accelerated depreciation and advanced technology, and two that MARL has requested, abandonment and CWIP in ratebase.  I've explained them ad nauseam in a special section of this blog, here.

MARL begins by telling FERC that it has already requested and been approved for several incentives, along with a formula rate, for an earlier transmission purchase.  Those incentives are:  
(i) recovery of all pre-commercial costs not capitalized and authorization to establish a regulatory asset that will include all such expenses that are incurred prior to the time costs first flow through to customers, including authorization to accrue carrying charges and amortize the regulatory asset over five years for cost recovery purposes (“Regulatory Asset Incentive”); (ii) use of a hypothetical capital structure of 60% equity and 40% debt until NEET MidAtlantic Indiana’s first project achieved commercial operations (“Hypothetical Capital Structure Incentive”); and (iii) use of a 50-basis point return on equity (“ROE”) adder for Regional Transmission Organization Participation (“RTO Participation Adder”). 
Now NextEra wants two additional incentives for MARL, along with the ability to use them for any subsequent projects.  
(i) recovery of 100 percent of prudently-incurred transmission-related costs of the Project if it is abandoned or canceled for reasons beyond the control of NEET MidAtlantic Indiana (“Abandoned Plant Incentive”); (ii) authorization to include 100 percent of prudently incurred Construction Work in Progress (“CWIP”) in rate base for the Project (“CWIP Incentive”); and (iii) authorization to assign the requested Abandoned Plant and CWIP Incentives, if approved, to any newly-formed PJM affiliate of NEET MidAtlantic Indiana that is involved in the development and construction of the MidAtlantic Resiliency Link Project.​

What are these two incentives, and what do they do?

First, let's look at the abandonment incentive.  It guarantees that the transmission owner (MARL) may collect all its prudently incurred costs for the project in the event that it is subsequently cancelled (abandoned) before being built.  First of all, the cancellation has to be out of the control of MARL, such as PJM cancelling the project due to an inability to get approvals or meet in-service dates.  PJM could also discover in a subsequent analysis that the project is no longer needed.  If that happens, MARL would need to make another filing with FERC detailing all the money it has spent on the project and a statement that they were all prudently incurred.  If FERC approves that filing, ratepayers would have to reimburse MARL for its costs, even though nothing is ever built.

Abandonment happens all the time.  One of the most famous is the PATH project that was abandoned in 2012 before a shovel ever hit the ground.  That debacle cost ratepayers around $500M, for a project that never happened.

In deciding whether to grant the abandonment incentive, FERC evaluates project risks.  If the project presents financial or other risks to the utility, then FERC grants it.  Therefore, MARL has told FERC that its project is extremely risky in order to be granted this incentive.  Some of the things MARL told FERC:
In addition, the Project requires construction of approximately 129-line miles of 500 kV transmission lines, 24 miles of which is located in a greenfield corridor that crosses through Loudoun County, Virginia, which is one of the wealthiest counties in America. Project opposition from residents in this County is foreseeable and may result in permitting delays, undergrounding requirements that may increase the costs associated with the Project, and/or litigation over the Project’s scope and construction. The Project also spans across four different states—West Virginia, Virginia, Maryland, and Pennsylvania—which will require NEET MidAtlantic Indiana to obtain necessary permits and approvals from a large number of different state and local regulatory bodies and will subject the Project to numerous different environmental and other regulatory standards and requirements. Finally, the Project is directly reliant on the construction of a 36-mile increment of 500 kV transmission lines being developed by First Energy as the incumbent transmission owner. Delays or cancellation associated with First Energy’s construction of its 36-mile increment may impact NEET MidAtlantic Indiana’s ability to obtain permits, finalize construction, and place into service the MidAtlantic Resiliency Link Project in a timely fashion. 


Additionally, the Commission has also recognized that large, new interstate projects can face substantial risks and challenges not presented by more ordinary transmission investments. Like other large interstate projects, the MidAtlantic Resiliency Link Project will span across four different states and many more localities, each with its own regulatory permitting requirements. The Project also traverses across regions of Virginia, such as Loudon County, that have traditionally been litigious when it comes to new, significant transmission build, and similar opposition is expected here. This opposition could result in Project delays or the inability to obtain certain required permits, such as a certificate of public convenience and necessity, ultimately resulting in cancellation of the Project for reasons outside of NEET MidAtlantic Indiana’s reasonable control.
Could those things happen?  Of course, but consider that MARL is making more of them for FERC's benefit.  Perhaps it's more useful as a list of vulnerable spots for opponents to attack.

The second incentive MARL requested is CWIP in ratebase.  CWIP stands for "Construction Work in Progress."  CWIP (pronounced "quip") is the financial account where all the project's capital costs are recorded until it is completed and enters service.  It can be treated two different ways.   

The first is for the company to add interest to the account each year as it slowly builds during construction, and to begin collecting the costs (plus interest) once the project goes into service.  Utilities find this difficult because they have to handle their debt until the project is finished.  It hurts their financial health to have huge amounts of unreimbursed debt on their books.  It can also hurt ratepayers because when collection begins, it can create huge, lumpy rate increases.

The second is for the company to include CWIP balances in their ratebase and earn a return (interest) on them right away, while the project is being constructed.  With this incentive, MARL will begin earning a profit on the money it spends as it spends it.  This allows MARL to pump this profit back into the project, instead of investing more of its own money or borrowing.  It helps their finances.  It can also help ratepayers because they begin paying for the project during construction, little by little, as the costs of the project add up.  Instead of a huge rate increase all at once, ratepayers pay increasing costs over time.

What's a ratebase?  Now we're going down the rabbit hole of transmission rates.  It's extremely complicated, but I'll try to give you the Cliff's Notes version.  FERC uses formula rates for transmission.  A formula rate is a formula that determines the utility's rate each year so that rates can change without a full rate process each year.  Instead of a dollar amount, the utility's rate is the formula itself.  The formula is that set of schedules, tables, and attachments that is stuck onto the end of MARL's filing.  That's MARL's formula rate.  Each year, the formula is populated with amounts from MARL's financial records and calculated using the formula to come up with an actual dollar figure.  Ratebase is the sum of all the accounts that earn a return (interest).  Ratebase, plus return, is added to the utility's Operations and Maintenance, Administrative and General costs, plus taxes, to come up with the yearly revenue requirement.  We pay the revenue requirement each year.   It is filtered through PJM's billing system and then the billing systems of the local utilities who send us our bills.  The utility must hold public rate meetings each year to present the result of their formula rate calculations.  Interested parties, described as those that pay the rates, can ask questions and submit discovery requests to see how the rate was calculated.  Yes, that includes people like us who pay an electric bill that includes some portion of these costs.  But that's all information for later...

A very simple explanation for how ratepayers pay for transmission is to liken it to the home mortgage that we're all familiar with.  The utility pays to construct the project (like the bank pays for your home) and then we pay the utility back over time, plus interest, just like we pay our home mortgage.

Because MARL made this filing so early, before its project was even approved by PJM, the window to intervene and file comments on its request for incentives has already closed.  We cannot act on it.  However, I can pretty much tell you how it's going to end... FERC will approve it and Commissioner Christie will file a statement saying that those incentives need to be re-examined and possibly cancelled.  Therefore, I can't feel too bad about not having to write another FERC filing that does no good.  Comm. Christie has got our backs.

And, in closing, I'm going to make one more observation.  As we all saw during PJM's planning process, these utilities are falling all over themselves to be selected to build new projects.  It is a COMPETITIVE process, and that only happens when participants WANT to be selected.  FERC's incentives are meant to encourage utilities to build transmission even though they may not want to, or if it is financially risky for them to do so.  Are incentives really necessary in a competitive planning process?  Without them, would these utilities still be competing to be selected?  Transmission is still incredibly profitable, even without incentives.  Transmission owners earn hefty returns on the money they invest building them.  Transmission returns on equity are set much higher than other market returns, so that building transmission is the most profitable place the utility can invest its money.  They have been as high as 16% when interest rates are up, and as low as 9% when the markets are down.  Even then, they are still much higher than anything you can find to invest your own money.  FERC returns are loosely tied to markets, so they fluctuate, but once FERC sets the ROE for a transmission project, it is set in stone until another proceeding is opened to re-examine it.  Begin a project when the market is up, and you get a high return that can persist for years, even when the markets change.  Transmission is a long-lived asset, and it is paid for by ratepayers over its useful life.  The expected life of many transmission projects is 40 years.  It's like a 40-year mortgage that we're going to have to pay.
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PJM Given Regulatory Authority by Federal Court

12/15/2023

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I'm sure even PJM's jaw dropped when it read a recent court decision that essentially says that a state MUST approve a transmission project planned by PJM.  PJM has been given new power by a judge legislating from the bench.  Surprise!

In Transource Pa. LLC v. Defrank, CIVIL 1:21-CV-01101 (M.D. Pa. Dec. 6, 2023), the court determined that the Pennsylvania Public Utility Commission's denial of Transource's application to build the Independence Energy Connection market efficiency project was unconstitutional.

When I first read Transource's screwy arguments appealing the PUC's decision, I laughed.  Maybe that was because I know too much about federal laws governing transmission, how the different actors relate to each other, and how PJM's planning process works to even entertain such a ridiculous argument.

Here's a clip from the overly long opinion that sums up what's at stake here:
“Defendants also argue that the PUC's decision related to siting, and not regional planning, because it was procedurally different from PJM's transmission planning process. (Id. at 12-14.) In support of this argument, they point to various ways in which PJM's process was purportedly faulty, whether by not conducting evidentiary hearings, taking sworn testimony, permitting cross-examination, or purportedly basing the benefit-to-cost analysis on stale information. (Id.) Meanwhile, the PUC's determination was based on timely information which provides, in Defendants' words, “an important procedural check on the unlitigated, un-reviewed conclusions reached by PJM.” (Id. at 13.)

If they were not allowed this important procedural check, Defendants argue, state laws would merely be a “rubber-stamp [of] every RTO-approved transmission line application.” (Id. at 14 (internal quotation marks omitted).) Defendants argue that the court need not parse the meaning of FERC's instructions in Order 1000 “because FERC has clearly instructed that its jurisdiction did not reach siting and permitting.” (Id.) Here, the PUC's decision was made “after the transmission planning process was completed. The PUC decision, therefore, was a valid exercise of its siting authority.”
”)
But yet the Court ruled that the state PUC must accept PJM's determination of "need" for this project and substitute it for any investigation of their own.  Pennsylvania's statute that the PUC operates under requires the PUC to make the following determination:
To obtain approval for their application, public utilities must satisfy the following requirements by a preponderance of the evidence:

1) That there is a need for it.
2) That it will not create an unreasonable risk of danger to the health and safety of the public.
3) That it is in compliance with applicable statutes and regulations providing for the protection of the natural resources of this Commonwealth.
4) That it will have minimum adverse environmental impact, considering the electric power needs of the public, the state of available technology and the available alternatives.
Public utilities must satisfy these criteria in the opinion of the PUC, not PJM.  Just because PJM finds a project "needed" does not obligate the PUC to make the same finding.  Transmission permitting is state jurisdictional.  The only space for FERC-regulated PJM or federal transmission permitting is under Sec. 216 of the Federal Power Act, where the U.S. Department of Energy may designate a National Interest Electric Transmission Corridor in order to give FERC backstop permitting authority.  The Transource project does NOT have a corridor, therefore permitting is entirely up to the state.  In a state proceeding without a corridor designation, PJM's opinion about the project is just that -- another opinion for the PUC to consider in its evidentiary findings.  The PUC did not find PJM credible.  It was not required by state or federal law to do so.

In fact, if this absurd decision holds, then it will never be necessary for another regionally planned transmission project to ever apply for a NIETC.  It won't need one because PJM's determination of need trumps a state determination and the only thing left for the state to do is to decide where to put it.  This court has interpreted "siting" in isolation from "permitting."  It's siting AND permitting, and under Pennsylvania law, the PUC must make a determination of need before it permits.  There is absolutely NOTHING in federal law that supersedes Pennsylvania law in this area.  Federal law cannot require the PUC to defer to PJM's findings of need.

So, the PUC has 30 days to appeal this travesty.  If it does not, this precedent will be used to cut off every state utility commission from doing anything other than rubber stamping projects PJM or another FERC-approved RTO/ISO selects.  PJM is a GRID PLANNER.  It has no authority to site and permit transmission.  There is absolutely no reason for this court to give them new authority that does not exist in the law.

​This cannot stand!
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PJM's Board Approved New Transmission Projects - Now What?

12/12/2023

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Yesterday, PJM's Board of Managers quietly approved over $5B of new transmission designed to import electricity created by coal, gas, and nuclear to Virginia's data center alley and the Baltimore area, where thousands of megawatts of coal-fired power plants are set to close next year.  New industrial load and closure of dirty generators is being solved by importing dirty generation from other states to the DC-metro area, an area that likes to pretend it's embracing clean energy and lowering its carbon emissions.  Hardly.  Clean energy policy is all smoke and mirrors... literally.

First, let's look at PJM's announcement.
The proposed solution includes new substations, new transmission lines and improvements to existing facilities. A majority of the project components use existing facilities and rights of way (through either repurposing/rebuilding existing assets or paralleling existing rights of way, which can reduce costs and minimize impacts to local areas). There are sections that would be new construction on land without existing transmission lines, known as greenfield development.
Well, that's a complete and total lie.  Apparently I have found the weak spot.  Paralleling existing transmission lines with new transmission lines on greenfield ROWs does NOTHING to reduce costs.  How so, PJM?  A new greenfield project would cost the same no matter where it is sited.  In addition, wreck and rebuild projects that expand existing ROW have additional costs of tearing down the existing line before a new one can be built.  As far as "minimizing impacts" that is also a huge lie.  Transmission lines are not like Lay's Potato Chips where you can't just have one.  Continuing to expand existing transmission corridors is the antithesis of environmental justice.  Nobody who lives with one (or more) transmission line across their property wants another one.  Impacts can actually be GREATER when paralleling existing ROWs because ROW expansion further intrudes into the host's land and gobbles up things built outside the current ROW, such as fences, barns, playsets, swimming pools, and water wells and septic fields.  Loss of water and sewer makes a property uninhabitable.  Expansion of existing corridors is like living next to an active volcano... they slowly expand until they overtake you altogether.  Just remember, if a utility builds transmission through your property, you are subject to another, and another, and another.  Not fair for you, not fair for anyone else.
PJM does not site the facilities or transmission lines nor determine their routes. This is the next step in the process and will be completed by the developers designated by PJM to construct the projects.
That's right.  I've been saying this over and over, but here's one more for the road.  The next thing the transmission company assigned the project will do is a detailed routing study that attempts to avoid homes and other structures, parks, historic resources, public land and environmental constraints.  What comes out of that process is a collection of competing short route segments that can be pieced together to form the actual proposed route.  The transmission company expects you all to fight with each other over these route segments in order to push it out of your own backyard and into your neighbor's.  The company asks you to comment on individual segments with the hope of finding the ones with the least objections.  Tough luck for you if you live on one of them.  Once the proposed route is established, the transmission company will file an application with the jurisdictional state utility commission.  The company asks that the commission approve the route and issue a permit to build the project.  This is a long, court-like process in which impacted parties can participate, either with or without a lawyer.  It is recommended that you do participate, if nothing else simply to preserve your right to appeal a decision you don't agree with.
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And take a look at those cost allocation tables in the attachments to PJM's announcement (Page 55). The lion's share (44%)  of the more than $5B cost will be paid for by Dominion's customers.  However, more than 10% will be paid for by customers in PJM's APS region, which includes not only portions of northwestern Virginia, but also more than half of West Virginia and big chunks of Pennsylvania.  Why are struggling communities in rural areas paying for a giant chunk of transmission that benefits some of the richest corporations in the world, such as Amazon, Google and Facebook?  West Virginia and Pennsylvania are not getting any benefit whatsoever, except what little bit of "reliability" leaks out from keeping the data centers and plant closures from crashing the grid altogether.  Why do others have to pay to shore up something that someone else broke?  This is not like historic load growth that came in small and widely dispersed increments and therefore affected the region at large.  This is like plunking a large city down all at once and plugging it in.  We can (and PJM has) point right to the cause of the new transmission.  Least they can do is pick up their own costs.  It is no longer just and reasonable to expect everyone to pay for the damage done by the few.  And if you think that's bad, check out the regional load ratio share allocations -- a portion of the costs that is allocated across the entire PJM region.
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These are all the other utilities who have to pay a portion of the costs for new transmission to serve data centers.  You can locate these utility acronyms on this map.
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Check out the ComEd region, for instance.  This utility in northern Illinois will pay for 13.39% of the shared costs, a larger load-ratio share than Dominion (13.32%).  Imagine how they feel about paying for transmission that supports new data centers in Northern Virginia and closing coal plants in Baltimore.

If you're totally confused by PJM's cost allocation system, just wait... there's bound to be some fireworks when PJM asks for FERC approval to allocate the cost this way.  More about that when it happens.  For now it's enough to know that PJM's historic cost allocation system does NOT work for these projects and therefore must be changed in order to remain just and reasonable.

PJM's White Paper (that they managed to hide until AFTER the Board meeting) pretends that your participation mattered.  Look what it said:
Project needs and recommended solutions as discussed in this report were reviewed with stakeholders during 2023, most recently at the October 31, 2023, and December 5, 2023, TEAC meetings. Written comments were requested to be submitted to PJM to communicate any concerns with project recommendations. All correspondence addressed to the PJM Board are available at the Board communications page.
All your letters to the Board got filtered through the TEAC and summarized.  The Board didn't read any of them.  I'm thinking that muzzling of stakeholders is NOT in PJM's beloved Manual of procedures.  Therefore, it most likely violates the rules it is supposed to follow that have been approved by FERC.  Anyone can file a complaint about that.

So, despite our best efforts, the PJM Board has approved the Window 3 projects.  Now what?

The real battle is just beginning.  Buckle up... it's likely to last for years.  Delay is our friend.  The enemy of our enemy is also our friend.  All of this will become crystal clear in due time.

But what should you do right now?  Reach out to your neighbor, ask them to reach out to their neighbor.  Form neighborhood groups that coalesce into town groups that coalesce into county groups that coalesce into state groups that coalesce into multi-state groups.  We're all family now.  Gather your people.  

And then circle the wagons.  Transmission opposition is as much a strategy battle as any other.  Keep your strategy discussions private.  The transmission companies will be desperate to know what you're planning so they can try to beat you to the punch.  They will infiltrate your groups and stalk you online in the creepiest way possible.  But don't be so paranoid that you aren't accessible to new folks.  There are layers to transmission opposition information dissemination.  After you meet a few of the utility wonks at transmission company public meetings you may be able to recognize them for what they are when they manage to infiltrate meetings.  I think after 15 years, I can practically SMELL them when they sneak into the room.  Once, I was guest speaking at a public meeting for a group when I noticed a guy way in the back row that positively screamed "utility guy" to me.  It wasn't so much his look as it was his behavior.  After I was done speaking, I pointed him out to the host leader and she told me he did work for a utility, but that he was secretly on their side.  Lesson:  not all utility nerds are bad guys, but there are plenty that are going to frustrate you and try your patience.  Take a deep breath.  Find the humor in the situation.  It helps.

When you've got your group together, feel free to ask me, "What's next?"  However, let's keep that out of public social media groups and out of public blogs.  I'm always available to answer questions or provide advice.

WE CAN DO THIS!

​
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PJM Meeting Aftermath

12/7/2023

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Here's another letter to PJM's Board of Managers, one that comes AFTER Tuesday's 8 hour Transmission Expansion Advisory Committee meeting.

If you attended that meeting hoping your participation could affect change, you can share this attendee's pain and disillusionment.

PJM deserves every.last.word of this letter...
​Dear Board Members,

I was a phone call member for yesterday's meeting. Yep, the entire meeting. I listened to the initial acknowledgement of the hundreds of letters you received. The slight defensive tone was hard to dismiss. I heard what was said about "once the Board approves the plan" more opportunity will arise for the public to voice there concerns. I also did note, you welcomed phone calls in and then moved onto your presentation. 

I listened to the need to retire some equipment nearing the end of it's life and the need for the massive output in the near future. I heard quotes of millions of dollars being passed around like Monopoly money, if I'm honest. We all know the true source of those finances. I also heard how and why we need the additional extensions and how soon those should be in place.

What I felt was completely ignored was the elephant in the room; the people being effected by this massive build. I followed Keryn Newman's line of questioning perfectly; what happens to the folks who loose their drain fields or the viability of their wells with the expansion process? The gentleman couldn't answer. He didn't have one. Crickets. What happens to the woman off Short Hill Mountain that already puts up with these towers and now is possibly slated for an extension to run south off her property as well. Where are the studies to show the placement of these towers are safe for Indigenous wildlife, showing it's safe for children playing near by, and even equally important, how the people living in these paths are supposed to maintain their quality of life.

It was evident that more studies for an accurate path were formulating and town halls were going to be promoted, BUT, the cow will be out of the barn at that point. Once a project is passed rarely are we able to go back and discount it. I felt the meeting was merely checking boxes; you allowed public transparency, as well as opportunities to ask questions, placated opposition and now you were simply going to proceed how you initially wanted. Us be damned. 

PJM, please find another way to get your power where it needs to go. I think the township of Waterford has the most serious claim, HOWEVER, that does not make the rest of us of less value. I implore you to do the right thing. 
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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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