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What Happens When a PJM Project Fails to Meet Milestones?

2/26/2017

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Grassroots group Residents Against Giant Electric (RAGE) continues its outstanding work against FirstEnergy's Monmouth County Reliability Project (MCRP) in urban New Jersey. 
In a recent article (and video) former NJ Transit vice-chairman Bruce Meisel vehemently opposed the MCRP, calling it "... a money grab project that puts the interests of JCP&L over the residents and ratepayers of Monmouth County.”

The significance of Meisel's opposition stems from MCRP's proposal to use New Jersey Transit's right of way for its project.  Without the approval of the NJT board, this project isn't happening.

The article says Meisel was most affected by the number of signs and the people opposing the project across the area when he took a tour of the area late last year.  That's directly attributable to the work of RAGE, who have been very effective winning the hearts and minds of the community and local governments.

If FirstEnergy thinks it can shout down this kind of opposition with a few well-paid business or labor advocates, its got another think coming.  There's nothing FirstEnergy can do to stem the tide of opposition to its project.  It's over.  MCRP lost.  Projects with this kind of political opposition never get approved.  Time for Plan B.

In recent press, FirstEnergy has been turning with increased frequency to what it may feel is its most powerful weapon... PJM Interconnection.
JCP&L has been consistent on the project’s need, which stems from a decision made by PJM Interconnection, a regional grid operator that oversees 13 states and the District of Columbia – New Jersey being one of those 13. PJM has stated that a 2011 review found that Monmouth County’s electrical system violates reliability criteria.
FirstEnergy has quickly gotten to the bottom of its bag of tricks and pulled out what it may feel is its trump card.  PJM says it's needed and therefore there is nothing anyone can do about it.  FirstEnergy wants its opposition to believe that PJM's approval of the project is the final word and that there are no alternatives.  FirstEnergy wants its opposition to believe PJM is an omnipotent authority whose word can never be questioned.

Most people have never heard of PJM.  PJM is a mystery to the average electric consumer, and after years of watching the PJM dance, I'd have to conclude that PJM likes it this way.  PJM has never seen any value in making itself understandable and accessible to the consumers it serves.  While touting itself as "transparent" and open to any "stakeholders," PJM is a hopelessly bureaucratic and technical maze that electric consumers aren't supposed to figure out.  Sort of like this guy:
PJM describes itself as:
PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 65 million people.

PJM’s long-term regional planning process provides a broad, interstate perspective that identifies the most effective and cost-efficient improvements to the grid to ensure reliability and economic benefits on a system wide basis.

An independent Board oversees PJM’s activities. Effective governance and a collaborative stakeholder process help PJM achieve its vision: “To be the electric industry leader – today and tomorrow – in reliable operations, efficient wholesale markets, and infrastructure development.”
PJM's planning process uses NERC criteria to define reliability violations that must be remedied.  Who is NERC?
The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to assure the reliability and security of the bulk power system in North America. NERC develops and enforces Reliability Standards; annually assesses seasonal and long‐term reliability; monitors the bulk power system through system awareness; and educates, trains, and certifies industry personnel. NERC’s area of responsibility spans the continental United States, Canada, and the northern portion of Baja California, Mexico. NERC is the electric reliability organization for North America, subject to oversight by the Federal Energy Regulatory Commission and governmental authorities in Canada. NERC’s jurisdiction includes users, owners, and operators of the bulk power system, which serves more than 334 million people.
Had enough acronyms yet?  This industry loves acronyms, it's their own special language that you aren't supposed to understand!

So, NERC sets reliability standards, and PJM uses NERC's standards in its planning process.  PJM and NERC are membership organizations.  Who are their members?  Companies with an interest in the work of the organization.  The industry sort of regulates itself within these organizations.  If the organizations are controlled by their members, and their members are the industry, then PJM and NERC are controlled by the companies they regulate.  PJM didn't use NERC violations to design the MCRP.  FirstEnergy proposed the MCRP to resolve NERC violations that showed up in PJM's 2011 planning process.  PJM simply rubber stamped the incumbent utility's solution to the problem, and nobody proposed any alternatives or spoke against it, therefore it was "ordered" by PJM's Board of Managers.

In its application to the NJ BPU, FirstEnergy says MCRP was the remedy for NERC N-1-1 (or Category C) violations.  If you stack up the different types of violations, N-1-1 comes at the bottom of the stack.  N-1-1 relies on a reliability comedy of errors to occur -- that one component of the system fails, and then a bunch of other components that were supposed to act as back up for that component also fail.  FirstEnergy describes the necessity for MCRP like this:
In the 2011 RTEP, PJM identified reliability criteria violations of NERC Category P7 (previously NERC Category C) contingencies for the outage of the Atlantic-Red Bank (S1033) 230 kV line and the No. 2, 230-34.5 kV transformer with the loss of the Atlantic-Red Bank (T2020) 230 kV line and the No. 8, 230- 34.5 kV transformer due to failure of a common structure containing both circuits. JCP&L confirmed this contingency may result in more than 700 MW of load loss, well above the 300 MW loss of load criterion limit, which violates the JCP&L Planning Criteria as well as PJM planning criteria. The JCP&L-proposed Project was confirmed by PJM that it adequately addresses the reliability criteria violation.
So, one transmission line is out, and then a transformer fails, and then another transmission line goes out, and then another transformer fails.... and then you need the MCRP to provide service.  That's 2 transmission lines and 2 transformers, all out of service at the exact same moment.  Chances of that happening?  Not likely, but it could happen, in theory.  However, it's not likely that failure to build the MCRP as proposed is going to make the lights in New Jersey go off in the near future.  Because if we want to play the "what-if" game, what if the MCRP also fails after the other 2 transmission lines and the other 2 transformers fail?  But NERC doesn't go that far out in its "what if" game, because it starts to get a little ridiculous.... and expensive.

A NERC violation was identified by PJM, FirstEnergy's JCP&L came up with a "back of the envelope" solution, PJM's Board of Managers approved the solution and assigned construction to JCP&L with a June 1, 2016 in-service date.  And then JCP&L began trying to implement their proposed solution.  The next year, JCP&L notified PJM that they couldn't get it done in time and proposed an extension of the in-service date to June 1, 2017.  And then JCP&L notified PJM a second time that the projected in-service date is now June 1, 2019.  In its application, FirstEnergy shares
PJM has not changed their required date for the project, but has listed the projected in-service date as June 1, 2019 in the RTEP Transmission Construction Status database... Note the PJM Required Date is the date the violation is initially identified to occur.
Apparently the violation keeps slipping out in time to keep pace with JCP&L's failure to get its proposed project accomplished.  How convenient!  I guess this "violation" isn't as urgent as FirstEnergy claims.  If the two transmission lines and two transformers fail tomorrow, PJM will still be able to keep the lights on using other components of the system.  But if the failure happens on June 1, 2017 (or 2019?), the lights will go out unless MCRP is there to pick up the slack.  Seems pretty improbable, doesn't it?

Nevertheless, as a member of PJM, FirstEnergy's JCP&L was assigned construction responsibility for the MCRP.  Membership comes with responsibilities.  Members pledge to follow PJM's operating rules, such as constructing projects which they are assigned.  The PJM Operating Agreement obligates the member to build, but it also gives the member an "out" if things go wrong with the project, such as a failure to secure required state or local permits.
1.7 Obligation to Build.
(a) Subject to the requirements of applicable law, government regulations and approvals, including, without limitation, requirements to obtain any necessary state or local siting, construction and operating permits, to the availability of required financing, to the ability to acquire necessary right-of-way, and to the right to recover, pursuant to appropriate financial arrangements and tariffs or contracts, all reasonably incurred costs, plus a reasonable return on investment, Transmission Owners or Designated Entities designated as the appropriate entities to construct, own and/or finance enhancements or expansions specified in the Regional Transmission Expansion Plan shall construct, own and/or finance such facilities or enter into appropriate contracts to fulfill such obligations.
PJM monitors the project's progress to meet certain milestones.
1.5.8 (j) Acceptance of Designation. Within 30 days of receiving notification of its designation as a Designated Entity, the existing Transmission Owner or Nonincumbent Developer shall notify the Office of the Interconnection of its acceptance of such designation and submit to the Office of the Interconnection a development schedule, which shall include, but not be limited to, milestones necessary to develop and construct the project to achieve the required in-service date, including milestone dates for obtaining all necessary authorizations and approvals, including but not limited to, state approvals.
 
1.5.8 (k) Failure of Designated Entity to Meet Milestones. In the event the Designated Entity fails to comply with one or more of the requirements of Section 1.5.8(j); or fails to meet a milestone in the development schedule set forth in the Designated Entity Agreement that causes a delay of the project’s in-service date, the Office of the Interconnection shall re-evaluate the need for the Short-term Project or Long-lead Project, and based on that re-evaluation may: (i) retain the Short-term Project or Long-lead Project in the Regional Transmission Expansion Plan; (ii) remove the Short-term Project or Long-lead Project from the Regional Transmission Expansion Plan; or (iii) include an alternative solution in the Regional Transmission Expansion Plan.

PJM isn't so much wedded to a certain project as it is compelled to find a solution to impending violations.  A project that fails to be permitted goes back to the drawing board, and PJM works with the utility to find an alternative solution that can be permitted.  Ill-conceived projects that draw staunch, sustained and wide-spread opposition rarely get permitted.  Who's monitoring JCP&L's "milestones" on the MCRP project?  Is PJM actively and independently monitoring MCRP's milestones, or are they simply taking FirstEnergy's word for it that its MCRP is on schedule and meeting milestones?  JCP&L's poor execution of this project has already cost the consumers three years of reduced reliability.  At what point will PJM "re-evaluate" the MCRP instead of simply shifting the milestones JCP&L fails to meet into the future?

While it is true that PJM has identified MCRP as the solution to future violations, that's only part of the story.  PJM can act to re-evaluate a failing project to come up with a better solution to prevent reliability violations.  PJM's mission is reliability, not adhering to rigid project concepts proposed by its members.  In fact, PJM transmission projects are suspended, canceled, or re-evaluated frequently.  PJM's approval of a certain project does not set its completion in stone.  PJM is subject to the outside forces of state regulators, who hold the ultimate authority to permit a certain project.  And state regulators are subject to the outside forces of state citizens who may support or oppose certain projects that are proposed.  The NJ BPU must weigh the benefits of the project against its detriments and find that the benefits outweigh the detriments.  If it does not find the MCRP beneficial, the NJ BPU may deny the project a permit.  And then it would be kicked back to PJM to come up with an alternative solution.  This sounds like a very long and expensive road, and ultimately it could cost JCP&L customers their reliable electric service. 

When will it be time for PJM to pull the plug on the MCRP?  Now, while there's still time to find an alternative solution to looming reliability violations?  Or later, when the lights go out?
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Offshore Wind Would Require Little New Transmission

2/24/2017

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A study released by the University of Delaware and Princeton University found that the east coast PJM grid can handle huge injections of offshore wind.
The UD and Princeton team showed conservatively that, with some upgrades to transmission lines but without any need for added storage, the PJM grid can handle over 35 gigawatts of offshore wind—that’s 35 billion watts—enough to power an estimated 10 million homes. They also found that the PJM grid could in the future handle twice that amount, up to 70 gigawatts, as wind forecasting improves, allowing the power operator to better predict and harness more wind.
That's really not surprising.  PJM has been looking at offshore wind for years.  What is new is the buy-in of eastern states to make it reality.

Coastal cities have a strong network of transmission that has been bringing them fossil fuel energy from the Ohio Valley for the past century.  The new report says that network should be upgraded to support reverse flow, that is from east to west, instead of west to east.  Sure sounds like a better plan than to build a new, expensive, gigantic network of transmission from the west to move an inferior terrestrial wind resource to the coastal cities.

And with the operation of the first offshore wind farm in Rhode Island well underway, eastern cities are also realizing the economic growth that comes with new industry.  A thriving offshore wind economy will breathe new life into eastern ports... where those receiving the benefits of the offshore energy will also receive the economic benefits of creating it in the first place.  It's a way for eastern cities to keep their energy dollars at home in their own communities.

Even with some minor transmission upgrades, the beneficiaries of the offshore wind transmission will also be those affected.  A plan to ship wind energy from the Midwest causes burden on Midwestern landowners who receive no benefit from the transmission, and this is what has delayed plans to build "clean" lines for the purposes of meeting some imagined eastern "need" for Midwest renewables.

Offshore wind is a win-win idea for eastern cities.  The only ones clinging to last decade's bright idea of shipping Midwestern renewables coast-to-coast are transmission builders, terrestrial wind companies, and Midwestern state governments who thought they saw a huge tax benefit from producing energy for export.  However, state tax benefits intended to encourage the building of energy for export have gone just a bit too far, as states like Oklahoma and Wyoming have had to roll back tax credits and impose new production taxes on wind generation in order to balance their budgets.  Becoming the "powerhouse" for other states isn't all it's cracked up to be.  The companies who own the energy infrastructure are the ones who end up with all the money, and the citizens are often left at the alter with broken economies and a wasted environment.

Every region has its own renewables, and developing local renewables is a much smarter choice than importing them from other regions.

We really don't need billions of dollars of new transmission lines to power the east coast with wind.  By using what's available locally, the east coast will make the switch to cleaner energy better, faster, and without requiring outlandish sacrifice from other regions to serve eastern needs.
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Maestro, if you please...

2/22/2017

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While EEI recognizes that it does not have the right, as a non-party, to submit a request for
rehearing, it is nonetheless submitting this Request for Reconsideration within the time allowed for rehearing requests under 16 U.S.C. § 825l(a).
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Federal Overreach on Transmission

2/18/2017

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Cupcakes:  delicious little pieces of heaven!  You probably don't think you need a cupcake until someone puts one in front of you.  All of a sudden, you want a cupcake.  You need a cupcake.  You must have a cupcake!  But you would have gone happily along without that particular cupcake because you really don't need a cupcake, and there will be more cupcakes offered down the road.

The National Association of Regulatory Utility Commissioners (NARUC) baked a cupcake for landowners last week, but snatched it away at the last minute.  Does this mean that NARUC will stop baking cupcakes?  Nope.  It means that NARUC will get back in the kitchen to perfect its recipe before offering a new and improved cupcake in the future.

At its recent winter meeting, NARUC's Electricity Committee proposed a Resolution opposing the U.S. DOE's misuse of Section 1222 of the Energy Policy Act of 2005 to preempt state authority to site electric transmission lines.
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But the resolution was tabled at the last minute.  E&E News did a whole bunch of speculating about why the Resolution was tabled, however it appears that E&E wasn't in the room and created its story from comments and opinion.
The move Tuesday at the winter policy meetings of the National Association of Regulatory Utility Commissioners in Washington was "unusual" said Elizabeth Jacobs, a member of the Iowa Utilities Board and vice chairwoman of NARUC's Electricity Committee.

"It wasn't supposed to be directed at any one project," said Jacobs. Rather, she said the resolution "was supposed to be about defending state jurisdiction [over transmission siting] going forward."

But there was some confusion "that made people really nervous," in particular its specific mention of the Plains and Eastern Clean Line proposed by Clean Line Energy Partners LLC, she said.

"I think some people had concerns with language about NARUC taking all necessary actions" to challenge the line, Jacobs said, and thought "Let's think this one through a little more."

The resolution was proposed by Sam Britton, a member of the Mississippi Public Service Commission. He did not return a call seeking comment.

Britton had explained to the NARUC committee that the resolution was "resource neutral" and not anti-wind or anti-renewables, said one attendee.
Well, gosh, I wonder where that "confusion" came from?  Could it have come from Clean Line Energy personnel lobbying at the conference?

The Resolution doesn't mention any particular project.  But it uses an example of DOE's misapplication of Section 1222 on the only project it has decided to "participate" in.  That project just happens to be Clean Line's Plains and Eastern Clean Line.  The Resolution explains Section 1222.  It states:
WHEREAS, Provision “(d) Relationship to Other Laws” of Section 1222 states that “Nothing in this section affects any requirement of ... (2) any Federal or State law relating to the siting of energy facilities; or (3) any existing authorizing statutes,” and
 
WHEREAS, On March 25, 2016, the DOE announced its plan to own the portion of a proposed power line that would traverse the State of Arkansas and rely on Section 1222 to exercise a Federal right of eminent domain in that state; and
 
WHEREAS, DOE has stated that it does not plan to request a site permit from the State of Arkansas but will instead rely on the federal Condemnation Act, which it says authorizes DOE to exercise eminent domain authority over any property so long as DOE has the legal authority to acquire the property, and so long as the project will constitute a public use; and
 
WHEREAS, NARUC has a long-standing position that the siting of electric transmission facilities should be subject to the exclusive jurisdiction of the States, notwithstanding the limited “backstop” siting provision in Section 1221 of the Energy Policy Act of 2005 (which NARUC opposed); and
 
WHEREAS, Without taking any position whatsoever on the wisdom of constructing any transmission project in which DOE wishes to participate or the type of power envisioned to be transmitted over such project, NARUC wishes to state its position on the proper interpretation of Sections 1221 and 1222;
NARUC recognized that Sec. 1222 does not authorize DOE to site the line, but reserves siting decisions to the states.  However, DOE has misinterpreted the statute to grant itself siting authority for a transmission project.  And if this interpretation stands, other states in the WAPA and SWPA federal power marketing territories (AR, KS, LA, MO, OK, TX, MT, ND, SD, NE, MN, IA, WY, CO, NV, AZ, CA, UT and NM) will be wrongly subjected to federal preemption of their state siting laws for any future transmission projects under Sec. 1222.  It's not a matter of "if," it's a matter of when.  NARUC has fiercely defended state authority to site and permit transmission projects.  Section 1221 of the same Energy Policy Act authorized the Federal Energy Regulatory Commission to act as a "backstop" to site and permit transmission lines in a DOE-designated National Interest Electric Transmission Corridor in the event that a state failed to act, or could not act, on an application for said transmission.  FERC conflated a failure to permit with a failure to act.  After a prolonged and hugely expensive court battle, the 4th Circuit determined that a denial of an application is an action of the state, and "backstop" authority was not triggered by a state denial.
We have analyzed the phrase "withheld approval for more than 1 year." Read by itself, the phrase does not include the outright denial of a permit application within the one-year deadline. We have also considered the phrase in the context of the entire statutory provision in which it appears. A reading of the entire provision reveals that Congress intended to act in a measured way and conferred authority on FERC only when a state commission is unable to act on a permit application in a national interest corridor, fails to act in a timely manner, or acts inappropriately by granting a permit with project-killing conditions. The broader context of § 216(b) thus confirms that the meaning of "withheld approval for more than 1 year" is plain: it means that action on a permit application has been held back continuously for more than one year. The continuous act of withholding approval does not include the final administrative act of denying a permit. Because Congress's intent is clear, our review under Chevron proceeds no further. For these reasons, we reverse FERC's interpretation of the phrase "withheld approval for more than 1 year."
NARUC has continued its opposition to federal preemption of state jurisdiction to site and permit transmission projects.

And then DOE inappropriately attempted to utilize Section 1222 to usurp state authority to site transmission projects.  It's Groundhog Day all over again!  And finally NARUC proposed a resolution to "...take all necessary actions to confirm NARUC’s position regarding Sections 1221 and 1222 and/or challenge, if necessary, DOE’s circumvention of State siting laws in the pursuit of projects pursuant to Section 1222 of the Energy Policy Act of 2005."
And then "confusion" happened.  E&E News inaccurately reports:
A group of state electric utility regulators tabled a resolution critical of the Department of Energy's plan to take an ownership stake in a 720-mile interstate transmission project from the Oklahoma Panhandle to Tennessee.

The galvanizing issue for some NARUC members is DOE's unprecedented use of its authority to take an ownership stake in a line under Section 1222 of the Energy Policy Act of 2005.
That's not the issue at all.  Section 1222 plainly allows DOE to "own" a transmission project.  What it does not allow is DOE preemption of state siting authority.  That was clearly the galvanizing issue for NARUC as expressed in the proposed Resolution.

What else did E&E get wrong in their opinionated "news" story?
The Plains and Eastern line is ranked No. 9 in a list of 50 high-priority infrastructure projects circulating among governors, lawmakers and the business lobby. And the line could become a topic of debate if Congress and the White House develop economic stimulus legislation aimed at infrastructure development.

The 50-project document touted the line as a "national security project that can add resiliency to our electric grid," citing its ability to "move cheap, clean, wind power energy" that could power more than 1 million homes in the mid-South.
Oh, the lobbyist list?  That has nothing to do with actual need for projects and is nothing more than a business lobbyist wet dream.  Being on the list means nothing in the grand scheme of things.  Especially because this "high-priority infrastructure list" seems to be purposed to score government funding for projects.  News flash!  We don't use taxpayer funds to build electric transmission.  Electric transmission has always been "user pays."  That's because electric transmission has distinct beneficiaries -- a project benefits only a subset of consumers.  How could the government justify using the collective pot of taxpayer money funded by all citizens to provide a "benefit" to just one state or region?  What about the other regions?  Will they be getting government-funded transmission projects that benefit them as well?  And how about those profits?  Transmission lines produce revenue for their owners.  Who would receive the revenue from a government-funded transmission project?  In the case of other infrastructure, the government owns the not-for-profit infrastructure and any profits belong to the people.  Why would the federal government use taxpayer money to fund a privately-owned infrastructure project that pays huge dividends to its owners?  The government isn't going to buy me a small business and let me keep all the profits from its operation.  But that's just what the DOE has done with its proposed "ownership" of the Clean Line project.  Clean Line funds it, the government "owns" it, and Clean Line keeps all the profits from its operation (well, except for that 2% DOE squeaked out of the project in its Participation Agreement).  Quid pro quo?  Section 1222 doesn't even contemplate, much less allow, the DOE to profit from "ownership" of a third-party transmission project.  And then let's talk about how Clean Line's rates would be affected by a sudden government investment in its project.  Clean Line has negotiated rate authority from FERC.  In essence, it allows Clean Line to negotiate rates with voluntary customers.  It requires that Clean Line accept all financial risk of its market-based project.  But if Clean Line's project is funded by taxpayers under the guise of "infrastructure development" then the risk clearly shifts to taxpayers and Clean Line no longer qualifies for negotiated rate authority.  If the government is going to "own" the project and fund its construction, then what's the purpose of Clean Line?  It would be acting in the capacity of government contractor, with its payday being 98% of the revenue generated by the project... forever.  I'm pretty sure the government could find a much more capable contractor, since Clean Line has never built or owned any transmission before.  Shoot... I'm pretty sure the experienced incumbent transmission owners would be lining up for an opportunity like that!  And even when transmission is owned by the government, such as transmission owned by federal power marketers WAPA and SWPA, the users of the transmission pay for it in their electric bills.  WAPA and SWPA do not take any operating funds from the U.S. Treasury.  They are supposed to be self-supporting governmental entities.

So, listen, any governmental "infrastructure" funds would change Clean Line's projects so significantly that they would never happen.  Clean Line needs to quit posturing about the lobbyist list and governmental financial support.

But, hey hey, the lobbyist list called Clean Line's project "a national security project."  Who determined that?  The lobbyist who created the list?  No official entity tasked with national security has determined that Clean Line's project is needed for national security.  In fact, Clean Line's project is a national security risk.  It could provide just one more vulnerable target in our complicated transmission system.  Adding more transmission doesn't make the system safer, since it's generally known that the transmission system has a handful of "critical" assets that could collapse the grid if destroyed.   New additions simply provide another entry point for our enemies.  Just ask the U.S. military, who has been islanding itself from the larger grid through development of distributed generation assets.  Local assets it can protect and control are safer than depending on some huge, unprotected system for the energy the military needs to protect the country.

And what did Clean Line have to say about NARUC's resolution?
Mario Hurtado, executive vice president at Clean Line who leads the Plains and Eastern Clean Line project, welcomed the NARUC decision.

"Resolutions in a collegial body like this are supposed to be noncontroversial," he said.

"It's not really the role of NARUC to decide on projects. I think a lot of the commissioners were not comfortable passing judgement on single project in this informal association that's supposed be about broad policy," Hurtado said.

"To now to try to relitigate things is sort of like you're trying to start the clock again, and that's not really fair for investors," he said.
What?  NARUC can never take a position that the industry disagrees with?  Surely you jest, Mario.  NARUC derives its strength from taking positions on important issues.  Mario is not a member of NARUC because he's not a regulatory utility commissioner, therefore he has no authority to determine the veracity of NARUC issues.  As has been explained here, NARUC wasn't attempting to decide on a single project.  NARUC was taking a position in a policy issue - DOE's misinterpretation of Section 1222.  Mario seems to think it's all about him.  Maybe Mario needs to see a psychologist about that?

Relitigate?  What?  Was NARUC litigating this issue at its conference?  NARUC doesn't litigate issues.  It is not a court.  And how can one "relitigate" something that has never been "litigated" in the first place?  Section 1222 has only recently come under court scrutiny in litigation initiated by Golden Bridge LLC, a landowners group in Arkansas.  The litigation of Sec. 1222 has only just begun and is certainly no where near being settled.  That's "litigation," Mario -- the process of taking legal action.  Legal actions only happen in courts.  The Court will interpret the plain language in Section 1222 to determine if it reserves siting to the states.

Was Mario referring to legislation, not litigation?  There's a world of difference.  Legislation is the making or enacting of laws.  It is undertaken by elected legislators, and in the case of Section 1222, the legislators who made and enacted it are Congress.  So, let's apply Mario's whining to the word "legislation."  Mario thinks that Congress can never revisit legislation it enacts because that wouldn't be fair to filthy rich investors who are counting on the enacted legislation to make even more money.  How does that square with Clean Line's negotiated rate authority where its investors accepted all market risk for Clean Line's projects?  Risk involves the acceptance that situations can change at any time, such as laws being amended.  Clean Line accepted that risk when it chose to proceed as a merchant transmission owner, so it needs to shut its pie hole.  Risky business propositions can provide huge rewards, oftentimes the higher the risk, the greater the potential reward.  But risk means things can change.

And let's back up a bit here... E&E suggested:
...the line could become a topic of debate if Congress and the White House develop economic stimulus legislation aimed at infrastructure development.
So while Clean Line whines about changing the rules in  the middle of the game as support for maintaining existing laws, it also wants to write new laws to support its project.  Government funding isn't the half of it.  Clean Line also wants Congress to enact new legislation to preempt state siting and permitting for transmission projects.  It wants Congress to strengthen feeble "backstop" siting provisions that currently exist in Sections 1221 and 1222.  It wants federal eminent domain authority to preempt any state role in the permitting and siting of transmission.  That sort of sounds like changing the rules in the middle of the game to me.  If Clean Line was so confident in Sec. 1222's ability to preempt state siting laws, then it would have no need to attempt to strengthen it. 

Who's a hypocrite, Clean Line?

And let's take a moment here to reflect on Clean Line's use of Section 1222 in the first place.  Clean Line says that it explored the use of Sec. 1222 because Arkansas denied them a permit for their project.  Except that's not what really happened.  Arkansas said it did not have authority to grant utility status to an entity that did not intend to serve customers in Arkansas.  When Clean Line applied for utility status in Arkansas, it proposed to simply "fly over" the state without making any capacity available to Arkansans.  Clean Line applied for Sec. 1222 BEFORE the Arkansas PSC had even made a ruling on its state application.  Clean Line was clearly proceeding with federal preemption before Arkansas even had a chance to make a ruling.  And then Clean Line added an Arkansas converter station after the Arkansas PSC ruling and said it intended to serve customers in Arkansas.  But did Clean Line ever go back before the APSC with its changed plan to serve customers in Arkansas?  No.  It simply proceeded on a long and expensive path to preempt Arkansas authority altogether.  Arkansas was never given the opportunity to site and permit Clean Line's project.  It was simply preempted from acting.

And, let's cut to the chase (finally, they say!):
For Iowa's Jacobs, the siting issue is getting greater attention by regulators as "the citizens and the consumers are getting more and more involved in major infrastructure projects that deal with energy."

"Consumers would not feel comfortable that the federal government is making a decision that could impact them within miles of their home," she said. "We're hearing it more and more."

The trend in opposition "gives play to the old adage that all politics is local. That's really where we are right now. That whole populist sentiment is really strong out there," Jacobs said.
That's you, Americans.  You've been standing up and getting involved in energy projects that affect your community.  You don't want decisions about energy projects in your community made in a Washington political swamp that has turned a deaf ear to the needs of average Americans.  Business as usual is over.

No matter how much political posturing Clean Line does (first they were great Democrats, and now they're trying to be great Republicans), decisions about individual projects at the state level aren't supposed to be political.  They're only political at a federal level.  And how would a Republican Congress think about an energy project owned by Democratic party funders?  Would a Republican Congress steamroll a path for a project that would provide staunch Democrats with even more money to spend opposing Republican candidates?  If Clean Line wants this to be political, let's get political!

But meanwhile, your cupcake isn't ready for consumption yet, America.
Jennifer Murphy, NARUC's assistant general counsel, emphasized that the tabled resolution does not negate the organization's opposition to even limited "backstop" siting authority granted to the Federal Energy Regulatory Commission, also in the Energy Policy Act of 2005.

"We have a resolution from 2009 that states our position on backstop siting. And until we have another resolution about backstop siting, that's our position on backstop siting," Murphy said.
It's back to the bakery for NARUC.  And while NARUC's actions are on behalf of the Association, they do not prevent any individual state from litigating this important issue.  Strong feelings will foment strong actions.  The best is yet to come!
7 Comments

Clean Line Making its Ego GREAT again!

2/14/2017

5 Comments

 
We're going to build huge transmission lines!  It's going to be great!  It's going to be the greatest transmission build ever!  And we're going to make the American people pay for it in their monthly electric bills!  It's going to be GREAT!
Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said.
Oh, puh-leeze.  Transmission is already great in this country.  In fact, we have federally regulated transmission planning and reliability organizations that plan and operate the greatest transmission system in the world.  These organizations carefully monitor our transmission system to ensure that it serves electric consumers reliably, economically, and meets public policy mandates.  It's already GREAT!

And the planning and reliability organizations have never found a need for thousands of miles of expensive, invasive "clean" lines.  That's why Clean Line Energy Partners is a merchant transmission company, proposing to build new transmission outside our regulated system and shoulder all the financial risk that nobody may find its lines useful, economic, or necessary to purchase.  We don't need Clean Line to "make transmission great again."  Our transmission system never stopped being great, but if it did, regulated planners would propose additions to the system to ensure it remained great.

But Clean Line needs our regulated transmission system to make itself great.  It needs volunteer customers to provide a revenue stream that would make its proposal profitable for its filthy rich investors.  And when that did not happen voluntarily, Clean Line now seeks to use the federal government to force electric customers into captivity to finance its projects.

Clean Line and its environmental sycophants, along with transmission industry profiteers, gathered together last week to scheme up a way to force legislators and governmental regulators to usurp state authority to site and permit new transmission projects.  And hilarity ensued.

Considering that there was only one news report of the event, and the front group that organized it didn't bother with social media engagement, it more closely resembled a closed echo chamber that nobody cares about.  So even though Clean Line president Michael Skelly shamelessly sucked up to the political party in power, nothing of any import happened.  Except I laughed!

Conference organizer "Americans for a Clean Energy Grid" has been trying to make itself relevant for years, but their execution is lame and conference attendees may randomly crap on all their ideas.
The organization, an initiative of the Energy Future Coalition, has held regional transmission conferences, but this was its first national event.

The coalition was formed in 2002 by former Sen. Tim Wirth, a Colorado Democrat; Republican C. Boyden Gray, who served as White House counsel to President George H.W. Bush; and Democrat John Podesta, a former aide to Presidents Bill Clinton and Barack Obama who chaired Hillary Clinton’s 2016 presidential campaign.
So this is really a political organization trying to masquerade as an industry or regulatory organization.  And even when they can manage to get important sounding participants to show up, the participants may not share the organization's rabid support for building new transmission outside current regulated planning processes.
“I’d love to have more load growth. It ain’t going to happen,” Craig Glazer, PJM’s vice president for federal government policy, told the gathering.

Weak load growth will make it more complicated to finance upgrades for aging transmission, and the lack of a federal carbon tax or renewable mandate is making it difficult to integrate renewable generation, Glazer said.
Gosh, that really doesn't sound like a glowing endorsement for building new merchant transmission to serve PJM consumers, which seems to be Clean Line's target market.

And when the organization's dream of taking away state authority to site and permit transmission was brought up:
Hoecker and Brown discussed FERC’s inability to gain “backstop” siting authority, saying it’s still very difficult to prevent individual states from blocking a project. The Energy Policy Act of 2015 amended the Federal Power Act to give FERC the authority to site electric transmission lines blocked by states, but court rulings have blocked the commission’s attempts to use it, prompting some in Congress to propose additional legislation strengthening FERC’s authority.

Brown said that Order 1000 hasn’t really helped SPP much with large regional projects.

“We need to decide what we want this grid of the future to look like,” Glazer said. For example, should it be a “localized grid” that can harness distributed generation? he asked. “There’s an added complication; it’s not even clear who is in charge,” Glazer said. FERC, state utility commissions and governors all have a say in siting decisions, he said.

If each governor is asked what infrastructure projects they want, the country will end up with a lot of state-based projects, not interstate ones, Clean Line Energy Partners President Mike Skelly said.

Perhaps the new mantra is “we’re going to make transmission great again,” Skelly said. The power to select infrastructure projects should not be taken away from transmission planners and placed in the hands of Congress, he said.

Skelly and others cautioned the Trump administration not to skimp on project reviews or stakeholder input. The key is that all projects must have “timelines” for regulatory approvals to avoid infinite delays, he said.

The executive director of the AFL-CIO’s Industrial Union Council, Brad Markell, said the labor movement agrees with the need for “hard timelines” to shorten the permit process.

Markell said that labor unions have been in contact with the Trump administration on potential infrastructure efforts.

“From our point of view, more power for the federal government and less power for the states [on electric infrastructure] would be a good thing,” he said.

Others deemed that unlikely. “I think we’re stuck with the system we have,” Glazer said.
But, wait a tick, the Skelly chameleon has actually participated in a federal process that skimped on technical project review and stakeholder input in order to usurp state siting authority for one of his "clean lines."  It seems to me that this is a top-down approach to forcing regulatory approval, instead of a fair and open review of proposed projects.

And then the environmental groups weighed in and things got a lot sillier.
Mary Anne Hitt, executive director of the Sierra Club’s Beyond Coal campaign, said that — contrary to what conference participants may have heard — her organization doesn’t oppose all power lines, only those that appear aimed to “prop up fossil fuels.”

The environmental group opposed the abandoned “coal by wire” Potomac-Appalachian Transmission Highline (PATH) project in PJM. On the other hand, it has backed the Plains and Eastern Clean Line Project, designed to move renewable energy from Oklahoma to Tennessee.

Hitt said she was concerned that President Trump’s nominee for EPA administrator, Scott Pruitt, opposed Clean Line in 2015 as Oklahoma attorney general.
Right... the Sierra Club should be the sole adjudicator of whether transmission projects "appear aimed to prop up fossil fuels."  And this subjective determination can really filter out bad projects.... I guess she doesn't know that her favorite Clean Line projects are being marketed as an arbitrage opportunity to ship fossil fueled electricity between regions, and that "clean" lines can't actually exist because all transmission is open access regardless of fuel source.  I guess that's what happens when you have a bunch of environmentalists meddling in things they don't really understand.

And an ineffectual time was had by all.  But, hey, the political posturing was exquisite!

And speaking of political posturing, here's some political posturing from E&E News regarding a real Washington, D.C., organizational conference with clout - the National Association of Regulatory Utility Commissioners winter meeting.  The members of this organization actually regulate utilities, they don't just talk about it.  E&E complains:
Curiously, there are no sessions scheduled there addressing the unsettled question of whether the federal government has any legitimate interest in transmission siting.
That's probably because this question is NOT "unsettled."  It's quite settled.  It's been settled for years.  Decades.  States have jurisdiction over electric transmission permitting and siting.  The federal Energy Policy Act of 2005 attempted to shift permitting to the Federal Energy Regulatory Commission if a state failed to act within one year on a permit for a project in a federally designated "national interest electric transmission corridor.  That has never happened, so who's to say its ineffective?  What was ineffective was a misinterpretation of this statute (Sec. 1221) that ended in a couple of hugely expensive federal court battles.  The EP Act also allows the U.S. DOE to "participate" in transmission projects financed by third parties, but reserves siting authority to the states.  Again, misinterpretation of the statute by the government has resulted in a federal court battle, still in progress.

This "question" isn't unsettled.  It's written in black and white.  But for those who want to misuse statute, it becomes an "unsettled question" kicked into federal court.  Just because an entity doesn't like the law does not make the law open to interpretation.  The law does not allow the federal government any authority over,  or interest in, transmission siting.  Transmission siting is state jurisdictional.

While it's oftentimes hard to tell a useful and influential Washington conference from a useless and ineffectual one, remember that not all Washington gatherings have the same amount of clout.
5 Comments

It's Pretty Windy in Hannibal These Days

2/11/2017

2 Comments

 
The Herald-Whig reports:
The Hannibal Board of Public Works wants to install a wind farm in Hannibal, and on Wednesday it signed a draft contract indicating its support for a future wind farm.

The Missouri Public Service Commission would ultimately grant approval for construction of the wind farm.
Where could the reporter have gotten an idea like that?  She must have been positively blown over by the over blown hot air generated at a recent meeting of the Hannibal Board of Public Works and the windy enthusiasm displayed by General Manager Bob Stevenson for windy things.  Can't fault that... we've all been there before.

No, a wind farm isn't being constructed in Hannibal.  That would probably make too much sense for Hannibal to get its energy from local sources.  Hannibal seems more interested in importing energy and running over hundreds of Missouri landowners to get it there.  And since the wind farm won't be installed in Hannibal (or anywhere else in the State of Missouri), the MO PSC wouldn't have to approve it.

Hannibal Courier-Post reporter Danny Henley may have been surprised to learn that energy is not included in the cost of transmission capacity on the Grain Belt Express, but he's still trying really hard to tie the two together unnecessarily:
After expressing public interest for months in securing low-cost wind energy, the Hannibal Board of Public Works Board took the next step Wednesday by approving a draft power purchase agreement to get wind energy from an an as of yet unapproved transmission line.
A power purchase agreement is for power (energy).  A transmission capacity contract is not necessary to purchase energy.  Except Stevenson pretended Grain Belt Express was necessary to get that energy to Hannibal.  It's not.  Hannibal can purchase energy from anywhere and use the existing transmission system to get it to Hannibal.  That's what Hannibal does today, and plans to do for 80% of its future energy, according to the article.

But Bob loves Clean Line Energy Partners.  And the harder he loves on CLEP, the more bizarre this whole drama becomes.

Bob made a big show of the BPW board signing a "draft" power purchase agreement with the mysterious "Kansas Wind Farm."  Bob says it's not a tentative agreement because the word "tentative" is not in the agreement.
"The word tentative is not in the agreement. This is a real commitment to us. That's how we intend to pursue it," he said. "But we all realize that things can happen yet through rulings or studies where we might find a show-stopper type of condition. We reserve the right to go back and re-think (the situation). If nothing changes of any significance they would expect us to sign this deal and live by it."
So, it's a draft agreement that has no legal effect, and the BPW can go back and change it at any time?  That's a draft tentative option to purchase power.

tentative |ˈten(t)ədiv| adjective
not certain or fixed; provisional: a tentative conclusion.
done without confidence; hesitant.

Tentative.

But yet, Bob told the assembled audience that this tentative draft option would have some legal significance at the PSC.
The HBPW Board was asked to sign the draft agreement as a show of support for both the Missouri Joint Municipal Electric Utility Commission (MJMEUC) and Clean Line Energy as they prepare their testimony to the Missouri Public Service Commission seeking approval to construct the Grain Belt Express transmission line from wind farms in western Kansas, across Missouri, to the Hannibal area.

Among the blanks on the contract is the price Hannibal will be paying for the wind-generated power.

"The initial price for the energy and transmission service is still confidential. Those prices will be revealed to the public during Public Service Commission testimony. We are satisfied they are going to be in the $21 a megawatt (MW) range when they are finally revealed, or less," said Stevenson.
Let me get this straight -- despite GBE's current argument that contract drafts have no relevance to the issues at hand, in order to keep drafts of a prior "contract" out of the hands of the opposition, GBE is going to present Bob's ceremoniously-signed draft PPA as evidence, along with testimony about this new issue, to the PSC during surrebuttal?

Ha hahahahahaha!

How many things are wrong with that picture?  Surrebuttal is the only round of testimony yet to be filed.  Surrebuttal testimony must relate to issues raised in prior rebuttal testimony.  I didn't read anything about Hannibal, Bob, or his CLEP infatuation in rebuttal.  Different rounds of testimony act sort of like a funnel to whittle down and refine issues to be litigated.  Direct testimony is the company's story.  Rebuttal is the response of the other parties to the company's story.  Surrebuttal is the response of the company to the other parties' story, and the response of the other parties to each other's story.  New issues cannot be brought up in surrebuttal.

And while Bob says the price is "confidential," he turns around and claims it's going to be $21/MW.  Whoopsie!  Loose lips sink ships (and derail trains), Bob!

Ceremonious draft option agreements have no legal relevance.

Sorry.

Bob claims the City has "committed" to purchase power.  Not with a draft option agreement, it hasn't.

He also says there is real risk to the City from this draft option agreement.
Stevenson did acknowledge there is one "point of risk for the city."

"In the event that the transmission line is completed and the wind generators are for some reason late and can't deliver energy, this contract obliges us to start paying for the transmission service anyway," he said.
And then he says
Stevenson is not losing sleep over that possibility.

"The odds of the particular generators that would be assigned to us being late are very low," he said.

A liquidated damages clause is written into the contract to pay those transmission charges should the wind generators be late.
So, someone else would pay the transmission charges in the event that the generators would be late.  Risk?  This is risky for the City how?

And Bob seems to forget how much the City's buying into Prairie State has cost because the project ran late and over budget.  Now THAT was risky.

I don't know about you, but I'm calling Hollywood.  The risk of not turning this into a major made-for-TV drama is just too much for me!  Imagine the scene... modern city utility manager makes a brave and daring move to escape from the shackles of an "all in" energy management contract to provide energy and capacity for the city's needs.  Will he end up the hero behind a celebratory community energy faire where the city utility pays citizens to consume its cheap clean energy? Or will he end up the unfortunate villain who gets mired in complicated energy disasters that end with the municipality risking it all by playing roulette with rate increases and blackouts?  Stay tuned, Hannibal, stay tuned!

If Bob and his draft PPA show up in the witness chair at the PSC hearings next month, I'm going to be popping some corn in preparation for the pure entertainment that will ensue!  I'm pretty sure the Clean Line attorneys will break out their special "Expert Twitness Shock Collar" and make Bob wear it.  I can't wait!
2 Comments

Show Me Why Grain Belt Express Should Be Denied, Missouri!

2/7/2017

1 Comment

 
And, they did!  Rebuttal testimony in GBE's latest attempt to get its project approved by the Missouri Public Service Commission has been filed.  This article attempts to "analyze" and summarize, but it doesn't acknowledge the weight of the individual testimonies, and that was probably hard to do within the confines of a word count.  So, I had to read it for myself... and I can use as many words as I need to do it justice.

Landowner parties Missouri Landowners Alliance and Show Me Concerned Landowners presented a fact-based, detailed, well-rounded defense against Grain Belt express.  They were bolstered by excellent rebuttal from Blake Hurst of the Missouri Farm Bureau and landowner Christina Reichert.  On the other hand, intervenors supporting Grain Belt Express filed a whole bunch of "me, too" fluff that was short on fact and detail and is likely to blow away in any strong wind of scrutiny.

Here are some of my favorites:

Ralls County Commissioner Wiley Hibbard -- gosh, I love this guy!  His testimony can only be described as forthright.  He doesn't mince words, but gets directly to the point on all issues.  For example:
In my opinion, this whole project is an attempt by a small group of investors to make a large amount of profit from the wind energy generation from Kansas. They have offered the proverbial 30 pieces of silver to local governments. Some have apparently taken it. I for one will not choose to do so. They promise Ralls County a whole million dollars (they must think this is 1960) to sell out our future. It is asking a lot of us to have our land taken by force to enable a few to get rich. I believe that other elected office holders should think beyond just today.
One million dollars?
Point made, Wiley, point made!

Don Lowenstein of the Missouri Landowners Alliance did a fantastic job with a really difficult subject -- taxes.  Nobody wants to even think about taxes,  instead they hire guys like Don to think about taxes for them.  He carefully and factually explains why GBE's claims of tax riches for affected counties are an overly-hyped generalization that has no basis in reality.
I think Mr. Tregengo’s assessment of the benefit to school districts and other county taxing jurisdictions is misleading because the facts are materially understated. 

I believe his overall discussion is short sighted because it does not address the tax revenues generated by the Project after it goes into service. Nor does it address the long term net tax benefits or losses. Therefore I regard most of his testimony as having little significance to an overall assessment of the longer term tax benefits to Missourians.

Basically, I believe that he spoke in generalizations which might leave the reader to see a much brighter prospect than actually exists for tax revenue benefits to Randolph and the other seven counties on the line. He omitted a discussion of which taxing jurisdictions receive little or no tax benefit.

Property devaluation expert Kurt Kielisch submitted fascinating testimony regarding the way electric transmission lines affect values of agricultural and rural property, and why industry-biased studies fail to capture the true cost to landowners.  The value of a piece of property in an open market is primarily perceptual, an idea routinely dismissed by industry-biased studies.
Essentially, the value of a property is based on the perception of the buyer. Understanding that perception drives value is the foundation in analyzing the effect that electric transmission lines have on property value.

This perception does not have to be based on a scientific or engineering fact, it is based on what a buyer believes. An example of perception driving value based solely on belief is the haunted house. A home cannot be proven scientifically to be haunted. Yet, there are several homes throughout the nation thought to be “haunted” which stigmatizes the property resulting in a diminished selling price.
Why would anyone want to purchase a piece of property with a high-voltage transmission line when they can find a comparable property without one?  I'm pretty sure nobody ever considered a high-voltage transmission line a wonderful and useful addition to a piece of property they were considering buying.  This goes double for agricultural property, where transmission lines pose an additional safety concern that the farmer has to work around.

Electric power expert Joseph Jakulski completely shreds GBE's greatest hope for approval, the transmission contract between GBE and the Missouri Joint Municipal Electric Utility Commission (MJMEUC).
Just as in the last case, Grain Belt still has no memorandums of understanding with wind generators, and no firm commitments from any load serving utilities to buy capacity on the proposed transmission line.

Grain Belt fails to mention that MJMEUC may without penalty or cost elect to take no capacity over the new line, and that decision will be made sixty to ninety days before the line is then expected to enter service.

The TSA is nothing more than an option agreement.


In short, there currently is no commitment from MJMEUC to buy any capacity on the proposed transmission line.

And about that purported $10M annual savings?
The only support provided for the $10 million estimate from the MJMEUC was an eight-row spreadsheet in response to MLA’s Data Request MJM.13.

It is a flawed calculation of the cost of transmitting 100 MW and 200 MW of wind power from SPP to MISO. There is no calculation of, or comparison to, buying wind power over Grain Belt. The spreadsheet also contains an error in calculating the loss component of the costs. The total costs end up including addition of megawatt-hours and dollars which is flawed mathematics.

The testimony of Christina Reichert is a well-written and compelling account GBE's burden on landowners, as well as a jaw-dropping account of GBE's repulsive interactions with landowners.  Christina tells how she was approached by GBE personnel after the PSC's original denial of the project because the PSC specifically mentioned her situation in their Order.  GBE told her they had "good news" and that the line was being rerouted off her property.  What happened next should give everyone pause:
  1. Mr. Lawlor asked how we felt about this move. We told him we would be thrilled not to have the line crossing our property, but that we did not want it moved to our neighbor’s property either. We couldn’t bring ourselves to benefit at the expense of our neighbors.

  2. He said that the proposal to move the line seemed like a viable option, but that they expected something in return from us. My husband asked what he meant. Mr. Lawlor never did tell us exactly what they were expecting in return for moving the line off our property, but said it would be nice to have something from us.
  3. We eventually told Mr. Lawlor that we could not agree to a move that would be detrimental to our neighbors, and that we would continue to oppose the Grain Belt Project. They thanked us for our time and left. That was the last we heard from Grain Belt about rerouting the line.
These are not the fair and aboveboard interactions with landowners that GBE pretends to carry out.  These are actions designed to reward landowners who toss their neighbors under the bus and support the project for the express purpose of saving themselves.  Sort of reminds me of GBE's pet landowner, Wayne Wilcox, who has testified that GBE crossing a tiny corner of his property isn't a problem and that he thinks the project is wonderful.

The testimony of agricultural expert Charles Kruse is a compelling account of the effects of GBE on agricultural operations.
I will rebut Grain Belt witnesses James Arndt’s and Lanz testimonies regarding how the Grain Belt Express project could impact farming operations as well as discuss other issues regarding the negative impacts to farming and land as a result of large transmission projects like the Grain Belt project. Specifically, I will address the following negative impacts: Compaction of Soil; Erosion; Irrigation Equipment Interference; Difficulty in Aerial Applications to Crops and Pastures; Possible GPS Interference; Problems Maneuvering Large Farm Equipment around Towers; Precision Farming Problems; Concerns about Storm Recovery; and Eminent Domain.
And he does, in factual detail.  He demonstrates that GBE's "agricultural expert" really misses the mark, as well as GBE's land lady, who really doesn't know much about agriculture at all.

Missouri Farm Bureau president Blake Hurst explains his organization's opposition to eminent domain, and he gets right to the truth:
Grain Belt Express Clean Line LLC’s supposed promises to sell power to Missouri municipalities should be recognized for what they are: a political stunt to create pressure for approval of this project by giving small benefits to local governments at the massive expense of landowners’ rights. Those municipalities in support will bear none of the burden from Grain Belt’s proposed project. It is instead Missouri’s rural landowners that will experience significant disruptions in their operations if Grain Belt Express Clean Line LLC is given the power to force land sales through eminent domain takings. This development does not change the underlying nature of the Grain Belt Express proposal. The project remains an attempt to engage in the abuse of eminent domain for private gain.
But the Missouri PSC Staff's report may perhaps be weightiest of all.  The Staff is acting as an impartial party to investigate GBE's claims and make recommendations to the Commissioners.  The PSC Staff found that the project is not needed and that GBE's analysis of "need" is severely flawed.  Staff also determined that the project is not necessarily economically beneficial.  It also opined that the Commission cannot grant a permit until GBE has the consent of the counties crossed.   The Staff has concerns about how GBE affects the safety of pipelines adjacent to its proposed route, as well as GBE's current ability to repair the project in event of failure.
In summary, based on Staff’s review: 1) Grain Belt does not have the consent of the Caldwell county commission for its proposed transmission line to cross the public roads and highways in that county, the validity of its consent from the Monroe County Commission is being challenged in court, and, presently, the prefiled evidence does not include any such consents by the county commissions of Buchanan, Clinton, Caldwell, Carroll, Chariton, Randolph, Monroe and Ralls Counties; 2) There is not a clear need for the Project; 3) Grain Belt is qualified to construct, own, operate, control and manage the Project, but additional expertise will be needed once engineering and safety issues have been resolved; 4) Grain Belt has the financial ability to undertake the Project; 5) It is not clear whether the Project is economically feasible due to the lack of various RTO studies and the uncertainties surrounding the ATXI Mark Twain transmission line and its effects on the Missouri converter station and corresponding congestion; 6) A determination cannot be made at this time as to whether the Project is in the public interest since there is still uncertainty related to the economic feasibility and the safety of the Project.
I'm not going to address the majority of the GBE supporters who filed "rebuttal testimony" in this case.  It's a fluffy bunch of opinion and hot air, short on facts and long on stuff that doesn't matter.  Instead I'm going to focus on only the testimony of MJMEUC witness John Grotzinger, who claims:
It is expected that the MoPEP cities will save approximately $10 million annually by utilizing the Grain Belt Express and Infinity wind contract in their power supply after the IPM contact ends in 2021.
And then he attaches the same spreadsheets that the MLA's witness has already shredded.  But you know what I found really amazing?  The continued use of that $10M savings number.  It was first seen in GBE's proposal to the cities last year as a preliminary calculation using existing production tax credits for wind.  And wouldn't you know it... that number has never varied, despite the reduction in production tax credits, and the sudden addition of a wind PPA just as the testimony was filed.  Wow, serendipity, right?  Or maybe just a little too much coincidence for believability.  It reminds me of the misery of high school algebra... here's the answer to a problem, now create an equation that could result in that answer.  Magic math!

Which brings us to the thing I found most ridiculous.  GBE's legal shenanigans and dirty tricks designed to keep MJMEUC's magic math from being fairly analyzed.  GBE wants MJMEUC to be able to barf all this who shot John into the evidentiary record at the latest possible date, and then prevent the other parties from getting background information to assist their analysis and rebuttal.  GBE has presented a "Joint Defense Agreement" that basically states that GBE and MJMEUC have a common interest and a joint defense that allows them to share information between the parties and keep the information they share confidential.  GBE supposes this keeps all its interactions with MJMEUC under wraps, a big mystery that can never be questioned.  Just look at that $10M savings number and don't ask how we got there.

But yet, GBE and MJMEUC chose to not file MJMEUC's testimony as part of GBE's direct testimony last summer.  Instead, they chose to keep it under wraps until January, when opposing parties would have only 30 days to analyze and respond to it.  GBE and MJMEUC pretend this is perfectly innocent, and that MJMEUC filed its testimony at its first opportunity -- the deadline for rebuttal testimony.  It simply wasn't legally allowed to file earlier.  Umm... deadline?  A deadline to file testimony means the last possible opportunity.  A deadline does not prevent an earlier filing.  In fact, MJMEUC could have filed its "rebuttal" testimony at any time prior to the deadline.  But filing it on the deadline narrowed the window of time available to the other parties to respond to it.  Your unsportsmanlike actions are plain for all to see, GBE.  So, if GBE believes MJMEUC is its saving grace for this application, and MJMEUC's contract is such a wonderful, transparent attempt to save ratepayers money, why is it trying to shield it from scrutiny?  And what does this say about whose interests MJMEUC is really representing at this point?  A really good deal for the electric consumers MJMEUC is supposed to serve should be able to shine in the sun, not be hidden under layers of confidentiality and legal dirty tricks.  If I was an electric customer in any of those cities, I'd be distinctly suspicious.  It's clear that GBE will do anything and toss anyone under the bus in order to get its project approved.  Must be a lot of money in it for someone.
1 Comment

Clean Line's Fake News

2/3/2017

3 Comments

 
All press is good press, right, Clean Line?

Not necessarily.  After years of using Democrats and environmental organizations as mouthpieces for its "clean energy" scheme to build billions of dollars worth of highly profitable new electric transmission, Clean Line suddenly wants everyone to believe that it has an "in" with the new Republican Trump administration.  As if media spin and fake news could boost investor confidence in a company with no conceivable revenue stream.

Last week it was the fake "Trump administration" infrastructure list that turned out to be nothing more than a lobbyist constructed wish list.  The Trump team disavowed the list as coming from them.

This week, E&E's environmental trade press wants us to believe that Clean Line's Jimmy Glotfelty may be appointed "Chief of Staff" in Perry's Department of Energy.

Hahahaaaaa!

Entertaining, however nothing but more fake news designed to pretend that Clean Line's projects are viable because they will be boosted by the new administration.

So, why can't Jimmy walk into DOE's revolving door and help Clean Line from the inside?

Because he's personally invested in the company.  This would be a huge ethics violation for an individual to "regulate" his own investment.

From Clean Line's testimony at the Missouri PSC:
Clean Line’s owners are GridAmerica Holdings Inc., a subsidiary of National Grid USA (“National Grid”); Clean Line Investor Corp., a subsidiary of ZAM Ventures, L.P. (“ZAM Ventures”); Michael Zilkha; and Clean Line Investment LLC.

Clean Line Investment LLC is a vehicle for service providers and employees to invest in Clean Line, and is a small, minority shareholder in Clean Line.

Which employees have invested in Clean Line Investment LLC?
Michael Skelly
Michael Zikha
Jayshree Desal    
James Glotfelty    
Mario Hurtado    
David Berry

If the mysterious "source close to the DOE" who placed Jimmy's name on the short list for a DOE position thought nobody would ever notice that Jimmy has a huge conflict of interest, the cat's now out of the bag.

What a ridiculous bunch of fake news!  Clean Line's attempts to generate supportive fake news has finally jumped the shark.  This simply cannot happen.

I wonder how much it has cost to place Clean Line in all this fake news?  As the folks at Block Clean Line ruminated:
While all these things seem kind of academic, it's pretty clear from Mario Hurtado's interview with NewsOK that the truthiness of this list isn't going to stop Clean Line from spinning it in a way they can use to preen (beg?) for financing and to pressure landowners.

"When the Trump campaign was looking at infrastructure, we thought it was a good thing to mention. We're just happy to be part of the conversation."

Like, when did you just happen to mention it? Did you run into them in the grocery store? How much did that conversation cost?

And how much mileage does this fake news really have?

Will it change the Participation Agreement between Clean Line and the U.S. DOE that requires the company to secure customers and financing before the DOE steps in to negotiate rights of way for the project? 

No.

Will it cause utilities to sign contracts for transmission capacity from a bunch of wind generators that haven't even been built yet? 

No.

Transmission without generation is a cart before horse proposition fraught with risk.  Would you buy shipping for a product from a certain location, before you even decided where to buy your product?  Of course not.  And that's where Clean Line's business plan hit the molasses swamp.

Will the Trump administration be fooled by all this fake news to believe that it supports a transmission project that its never taken official notice of before?  Will no one speak out about all this fake advocacy?

Personally, I've had enough fake news.  As if the folks so upset by last year's election can overcome it by projectile vomiting a huge vat of half true and made up crap.  The greatest danger of embellishing is that folks will simply tune you out and stop listening.
Here's a little reality.

No matter how Clean Line spins news to try to make you believe Trump champions their project, there is nothing the administration can do to make the project happen.  It's a market-based project, and the market just isn't there.  Who is Clean Line trying to fool with this fake news?  Maybe landowners, who are resisting their efforts to purchase rights of way for the project.  Maybe investors, who may be getting nervous because Clean Line has no customers.  And maybe they just like to hear the sound of their own name, even though the claims are empty.

Is the Trump administration really having secret meetings with Clean Line Energy Partners?  Go ahead, ask them!
Right now, I'm a villager.  I don't believe it.
3 Comments

    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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