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Dysfunction Junction - The PJM Cartel's Family Dynamic

12/9/2010

2 Comments

 
Although some may think 6 hours of travel time to attend a meeting that probably didn't last an hour is a waste of time, yesterday's trek to PJM's TEAC meeting proved invaluable from an observation standpoint.  It's just as well that there wasn't anything particularly PATH-etic on the agenda, because analyzing the dynamics at work here was much more interesting.

What is PJM, why do their member utilities fear them, and why does PJM think they are invincible?  We know PJM is a cartel of electric utilities who are tasked with managing the regional electric grid system.  The idea of it may have sounded good on paper, but FERC has created a monster!  Since corporations are reveling in their recently-granted personhood, let's treat them accordingly.  After observing the way PJM and its members interact, I'm now seriously worried about the lights going out at any second while this dysfunctional little family gets lost in their destructive behavior patterns.

PJM plays the role of tyrannical parent.  The member utilities play the role of scared little children with varied levels of aggression.  The tyrannical parent makes decisions based not on the good of the family as a whole, but as a reward system for the more aggressive of the children.  These aggressive children receive their rewards with the understanding that they must remain in their subservient role to the parent, while simultaneously dominating the meeker children, in order to continue to receive the tyrant's approval.  Dysfunction Junction, without compunction!

PJM believes they answer to no one and have become bolder and bolder in their favoritism and illogical decisions.  When an action that is obviously illogical to family outsiders is taken, the family closes ranks.  The bolder of the meek, powerless children who are negatively affected by the action may ask an ineffectual question or two, but the tyrant is not to be questioned and does not even afford the courtesy of a proper answer.  Silence ensues and the action is accepted and any opposition is swept under the rug.

I observed one member utility ask several questions regarding actions favoring another proposed project over its own, only to be stonewalled by Herling, whose lips were moving, however nothing of substance was coming out.  It sounded a lot like Miss Othmar here.  The member utility finally gave up and suffered in silence.  None of the other members voiced an opinion.  Just because this method works for Herling in this venue doesn't mean it works in the real world the rest of us inhabit.  There were many other instances where PJM's contradictions or illogical actions were questioned, only to be handled in the same dysfunctional manner.  Specific rules or operational procedure that might curtail some of this dysfunction are not permitted to exist at PJM.  Although lip service is given to creating some, I don't think anyone seriously expects that to happen because then the dysfunction would cease to exist, and it seems like both PJM and its members revel in their oppressive, screwed up dynamic.

Why all these corporate "persons" are content to suck up to an unfair, hated tyrant instead of banding together to conquer their oppressor escapes me.  I guess they have spent so much time in the company of their little dysfunctional family that being tossed a crumb or two on occasion while watching their favored siblings feast at the all-you-can-eat buffet is better than not eating at all.  Dumb.  And the end-use customers are the ones who pay for it all.

Fortunately, Dysfunction Junction really isn't invincible at all and it seems that at least one of the citizen opponents has scented blood on the wind and has taken a particular interest.  I'm going to pay it forward and say about this person... "I'm glad you're on my side!" 
This person also sees a lot of parallels between Dysfunction Junction and and this video.  I agree! "The world is mine!"  :-)
2 Comments
VeryConerned
12/9/2010 03:21:19 am

I'll give you a Hmm. The project is being sole sourced for Management and Construction to the same companies that built the TRAIL project. They are not soliciting competitive quotes from other qualified firms with the ability manage and /or build the line. We the rate payers within the PJM territory should demand if the line get built, the process by competitive.
A little information on the construction of TRAIL line; Allegheny awarded the management and construction of the project on a time and equipment contract to one company. Regardless of the firm performance, they are guaranteed payment. In fact, the less efficient the contractor was, the more revenue they stood to gain. Sound familiar to the return on equity the utilities receive on cost to complete these projects. The more they spend, the more they make. There are multiple companies that were capable to complete the management and construction of the transmission line. However as stated above, they sole sourced the project. This cost the rate payers millions of dollars. We the people footing the bill should never allow this practice to happen again.

Reply
Keryn
12/10/2010 02:22:26 am

Very,

My impression is that contracts are put out for bid. If you have evidence to the contrary, or evidence that the awarding of contracts is skewed, please email it to me at keryn at stoppathwv.com

It seems that greed and bloated costs paid to favored vendors have become a theme.

Reply



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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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