At the beginning of the month, Clean Line issued a press release touting a "contract," or "agreement" with some Missouri municipal electric providers. But Clean Line neglected to share this wonderful agreement.
Here it is.
What's in the agreement?
Up to 200 MW of transmission service from Clean Line's proposed southwestern Kansas converter station to a proposed DC/AC converter station in Ralls County, Missouri, available in 2 separate, differently priced 100 MW tranches. Or even any other amount of transmission between 0 and 200 MW. That's right, zero. Because this isn't a firm contract at all. Customer (MJMEUC) can change its mind at any time up to 60 days before "the date on which the Project begins commercial
operations and is capable of providing [...] Transmission Service" and elect not to purchase any transmission at all. None. Zero.
Price for transmission service from Kansas to Ralls County, MO:
Here it is.
What's in the agreement?
Up to 200 MW of transmission service from Clean Line's proposed southwestern Kansas converter station to a proposed DC/AC converter station in Ralls County, Missouri, available in 2 separate, differently priced 100 MW tranches. Or even any other amount of transmission between 0 and 200 MW. That's right, zero. Because this isn't a firm contract at all. Customer (MJMEUC) can change its mind at any time up to 60 days before "the date on which the Project begins commercial
operations and is capable of providing [...] Transmission Service" and elect not to purchase any transmission at all. None. Zero.
Price for transmission service from Kansas to Ralls County, MO:
$1,167 per MW/month, escalating at 2 percent (2%) annually beginning as of the Commencement Date for the first 100 MW tranche.
$1,667 per MW/month, escalating at 2 percent (2%) annually beginning as of the Commencement Date for the second 100 MW tranche.
That's $1.167 per kwh, and $1.667 per kwh. Per month. With a guaranteed 2% price increase each year.
But that's not all the contract proposes to sell to MJMEUC, if its future "Notice of Decision" is to proceed with the contract.
The contract also proposes that MJMEUC will purchase up to 50 MW of transmission service between Ralls County, Missouri, and Clean Line's proposed converter station in Sullivan, Indiana (in the PJM RTO electricity market). What is MJMEUC going to be loading onto this "clean" line to sell to customers in PJM? Will it be "clean" electrons?
Price for transmission service from Ralls County, MO to PJM:
But that's not all the contract proposes to sell to MJMEUC, if its future "Notice of Decision" is to proceed with the contract.
The contract also proposes that MJMEUC will purchase up to 50 MW of transmission service between Ralls County, Missouri, and Clean Line's proposed converter station in Sullivan, Indiana (in the PJM RTO electricity market). What is MJMEUC going to be loading onto this "clean" line to sell to customers in PJM? Will it be "clean" electrons?
Price for transmission service from Ralls County, MO to PJM:
$2,500 per MW /month. For the first two years, after which time the contract may be extended for a period up to 26 years.
The contract also requires MJMEUC "to file an
intervention and comments supporting FERC's acceptance of Transmission Provider's FERC [compliance] filing without modification or condition."
As well
intervention and comments supporting FERC's acceptance of Transmission Provider's FERC [compliance] filing without modification or condition."
As well
the Parties shall cooperate with
each other to obtain all Governmental Approvals that are required for Transmission Provider to construct and operate the Project and put this Agreement fully into effect, including making any filing in support of another Party's application for any such approval as requested by the Party
seeking such approval. From and after the Execution Date, the Parties shall not take any action, or seek any relief, before any other Governmental Authority that is inconsistent with the terms and conditions of this Agreement.
Be a good witness.
So how much would it cost to transmit electricity all the way from Kansas to PJM on a "clean" line?
Add it up.
There is no actual electricity priced in this contract. Customer shall enter into a separate power purchase agreement with a third party vendor at some future date. Clean Line cannot sell electricity.
So how much would it cost to transmit electricity all the way from Kansas to PJM on a "clean" line?
Add it up.
There is no actual electricity priced in this contract. Customer shall enter into a separate power purchase agreement with a third party vendor at some future date. Clean Line cannot sell electricity.
RSS Feed