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Food for Thought

10/19/2013

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I'm one of those very annoying people who usually has dozens of windows open on my computer.  It's my virtual "to do" list of interesting items or things that need to get done.  Every once in a while, I can sweep through and clean the whole mess up by linking all the news stories together in a blog post.

It's been a long week.  Next week probably won't be much better.  Creativity is in short supply.  Therefore, prepare to be wowed by a recitation my open window collection of interesting news links so I can close them and start fresh:

Microgrids and distributed generation -- articles on this topic are multiplying like bunnies.  Why do you suppose that is?  It's because IT'S GOING TO HAPPEN, no matter how much the traditional utilities and transmission speculators stomp their feet and bang their thick heads on the floor.

EBay, Ellison Embrace Microgrids in Threat to Utilities

Don't let the crappy headline fool you.  This is a great article about microgrids.

Recent power failures that have affected millions of customers help fuel demand for microgrids. Hurricane Sandy knocked out electricity for 8.5 million customers, showing just how vulnerable utility infrastructure is to storms.  Sandy proved a powerful endorsement of microgrids. While millions languished in the dark, microgrids at the FDA’s research center and Co-Op City, a 45,000-resident housing cooperative in Bronx, New York, kept the power flowing by disconnecting from the stricken grid and running in what’s called “island mode.”

“It’s a hard pill to swallow,” said Pullins, likening utility resistance to microgrids to that of U.S. car companies in the 1970s when the federal government first imposed mileage standards. “When those rules came out, Toyota went out and hired 1,000 engineers to figure out how to meet them. GM went out and hired 1,000 lobbyists to figure out how to beat them. There is some of that going on. With a few exceptions, the utility industry hasn’t embraced microgrids.”

Maryland Governor O'Malley and FERC Chairman Jon Wellinghoff Celebrate the Completion of the State's First Commercial Solar Microgrid

The 402 kW solar microgrid system, a grid-interactive energy storage system co-located with a new 1,368 panel photovoltaic (PV) canopy array, is also recognized as one of the first commercial solar microgrids in the nation.

In the event of a conventional power grid outage, the innovative solar PV array will stay online through the power of an advanced energy storage system. If grid power grid goes down, the system batteries will keep a critical load of 50 kW online for just over four hours at night and recharge the next day.

"Successfully pairing reliable emissions-free solar power with energy storage provides a range of additional new benefits: emergency back up during power outages, grid stability, and peak demand reduction. Simply put, PV plus storage is ushering in the grid of the future."

Rethinking 'Grid' Resilience: Are We Gold Plating The Electric Grid?


What's the difference between resilience and reliability?  Really?  What kind of money-making scam are the utilities pulling this time?

“When reliability managers . . . meet [reliability challenges] through an exclusive, central-station-focused, wires and turbines policy, they may fix each ‘weakest link’ in the supply chain as it appears. But once one upgrade is completed, the next weakest link will then emerge,” Rich Sedano, a principal at the Regulatory Assistance Project, wrote more than a decade ago.

Distributed energy resources can enhance the reliability of the power grid from the local distribution network to power plants by lightening the load supported by the power grid.

In other words, energy resilience begins where the electric power grid ends.

“A narrow focus on fixing today’s weakest links in the supply chain will ultimately be less resilient and more expensive than a strategy that identifies reliability-enhancing distributed investments,” said Sedano.

I agree.

Hackers in the electric grid? Meh—fear the dude with the stolen tractor

Not-so-surprising look at just how vulnerable our centralized grid really is.  Why are we building MORE of it?

And... just because it includes pictures of the evil Nicholas-Rickolas twins... I'll leave you with this delightful romp around AEP's CEO's head.  How can so many words say so very little?

Q&A With Nick Akins

Have you had any mentors who shaped your career?

Certainly Mike Moore the previous CEO had a lot to do with my career...




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FirstEnergy Customers Learn About Their Electric Bills

10/18/2013

4 Comments

 
Customers of FirstEnergy subsidiaries Mon Power and Potomac Edison came away with useful information from last night's customer education meetings in Morgantown and Charles Town.  Another meeting will be held tonight in Arnoldsburg.  The meetings, hosted by the Coalition for Reliable Power and affiliated organizations The Mountain Institute and the Jefferson County NAACP, provided advice and suggestions for how customers can protect themselves from paying badly estimated electric bills that snowball out of control this winter.

The Coalition recommends that customers learn how to read their meters and take a reading as soon as possible after receiving their monthly bill.  If the billed usage varies from the recorded usage by more than 100kwh, the customer is urged to call the company at 1-800-686-0011 to provide an actual reading and request a re-billing.

Customers were also surprised to learn of a $5.00 flat monthly charge per customer included in the "base charge" line item of their bill.  This "customer charge" pays for meter readers, billing, distribution system maintenance and other fixed costs.  However, if the company doesn't spend the full amount every month, whatever is left goes into the utility's pocket as extra profit!  Potomac Edison and Mon Power never have to account for how that $5.00 is spent, therefore they may trim expenses, such as cutting their meter reading staff or failing to perform right-of-way or line maintenance, in order to pocket the difference.  These FirstEnergy companies serve approximately 500,000 customers in West Virginia.  Half a million customers x $5.00 every month equals $2.5M paid to FirstEnergy every single month.  Whatever the company doesn't spend on services for us is theirs to keep.

Customers were also upset to learn how much the recently approved Harrison Power Station purchase is going to cost them.  More than $800M must be repaid to the company over the next 27 years, plus an additional $240M for needed pollution control upgrades.  Customers don't feel that they are being adequately protected by the WV Public Service Commission or the WV Consumer Advocate.  Who's looking out for residential ratepayers?  The meeting attendees think C4RP and its partner groups are doing a better job than appointed officials!

The Coalition was joined by Senator Herb Snyder last night in urging customers to attend the WV Public Service Commission Public Comment Hearings next week to tell their stories.  The PSC needs the help of every customer who has been affected by the company's shoddy business practices to provide evidence by telling their story.  Only if enough of us step up to tell our stories and corroborate each other will the PSC have the evidence it needs to properly punish the company for its deliberate injury to customers, as well as to order remedies to get things back on an even keel.  The Coalition is recommending that customers request that the PSC require the company, at its own expense, to read every meter, every month, for one year in order to develop accurate base line data for future estimates.

The Public Service Commission Public Comment Hearings will be held:

October 23, 2013       5:30 p.m.    Shepherd University Frank Center, Shepherdstown, WV
October 24, 2013       9:30 a.m.    Shepherd University Frank Center, Shepherdstown, WV
October 24, 2013       5:30 p.m.    West Chester Village, Stafford Room, Fairmont, WV
October 25, 2013       9:30 a.m.    West Chester Village, Stafford Room, Fairmont, WV

You must sign up with the WV PSC clerk in the lobby in order to make a comment to the Commissioners.  Comments may be limited in length, depending on the number of commenters who show up, so that everyone gets a chance to speak.  Commenters should not expect to engage in dialogue with the Commissioners or the company.  You may provide your comments without receiving feedback.  The PSC has ordered that the first 30 to 60 minutes of the hearing will consist of the company discussing:  the circumstances that gave rise to the current customer meter reading and billing problems; how the merger and severe storms in 2012 affected customer meter reading and billing; changes implemented to improve customer meter reading and billing; planned changes to improve customer meter reading and billing; and services available to customers continuing to experience meter reading and billing problems.  If you arrive a little late and miss FirstEnergy's infomercial of excuses, that's okay.  The hearing will continue as long as people continue to arrive and sign up to speak.

In addition, the PSC has ordered that the company arrange for its representative(s) to have access to customer records at each hearing and be available to speak with customers individually after the completion of public comment.  So, if you have a question about your bill(s), bring it along and get in line to talk to a representative.  There's no guarantee that  your in-person wait will be quicker or marginally more pleasant than the endless hold queue you are routinely placed in over the phone, but hopefully it will be a lot harder for those customer service representatives to be snotty and unpleasant when they are face-to-face with real people.  It's nice for the PSC to provide the company's staff with this little reminder that they are supposed to serve real people, so let's all do our part to help them cast this production.

And remember -- tell the PSC -- EVERY METER, EVERY MONTH!

Cross posted from The Coalition from Reliable Power Blog.  If you have questions or need additional information, email The Coalition.
4 Comments

An Open Letter to EUCI From "The Public"

10/18/2013

22 Comments

 
Dear EUCI,

I've come across another one of your conference agendas recently.  After drying my tears of laughter, I shared it with my friends in "Mayberry."  They are not impressed.  In fact, you could call them downright miffed at your arrogant, condescending and inaccurate attempt to pretend you understand them, their communities, and their lifestyles.  How dare you!?!

The cause of the current consternation is your 8th Annual Public Participation for Transmission Siting conference.  While this conference has historically been an annual source of amusement to transmission opposition leadership, this time you've gone too far.

Perhaps all that crisp, green sponsorship gets in the way of your better judgement, but should you take a few moments to reflect on the veracity of your conference speakers, as well as the accuracy and effectiveness of their presented material, you might find something amiss.

Keynote speaker Jimmy Glotfelty's presentation is touted as:
Clean Line energy will discuss the public engagement challenges that are inherent when developing and building new large infrastructure projects. How do we overcome these challenges and work to ensure that our stakeholders feel they are informed and part of the process, each step of the way? He will discuss the lessons learned and some of the challenges faced in his career developing transmission projects across multiple states.
Jimmy Glotfelty?  The same Jimmy Glotfelty with the orange shirts and bribe money?  The same Jimmy Glotfelty who had to be told by the police to stop harassing high school students and offering them money to testify in favor of his project?  That Jimmy Glotfelty??  We've heard of him.
First of all, we don't believe that Jimmy has successfully developed any transmission projects during his "career."  We consider him a wanna be.  Secondly, we wonder if Jimmy will be giving away orange t-shirts, hamburgers, gas money and rides to the conference to demonstrate how he "overcomes" challenges?  Jimmy's deliberate, completely avoidable, behavior at a recent Illinois Commerce Commission Public Hearing was reprehensible and probably did more damage to Clean Line Energy's public and regulatory image than any number of truly unavoidable challenges ever could.  We fear that if other transmission developers begin to adopt Jimmy's methods, transmission building is going to come to a screeching halt and the lights are going to go out.  Jimmy should be considered transmission's public enemy #1.
Next, we'd like to discuss your burgeoning interest in social media.  Just so you know, social media allows the public to express opinions that drive rejection or acceptance of an idea or proposal.
Case Studies: Understanding Ins-and-Outs of Utilizing Social Media for Public  Engagement.
In a time where social media is one of the most common forms of communication, it is
important to understand when it is appropriate to utilize it to engage the public and stakeholders during the transmission siting process. It is crucial to understand when to use it as a main form of communication or as a supplementary form of communication - and who you can expect to reach, and how. This presentation will use and demonstrate
how social media is currently being used as an integral portion of a public outreach and
communications plan.
- Louisa Kinoshi, Associate, Clean Line Energy
Did you even bother to look at Clean Line Energy's Facebook real estate before agreeing to this presenter's version of social media mastery?  Probably not, because Clean Line Energy no longer has any Facebook properties!  Clean Line shut them down because real people kept getting in and posting their honest thoughts and opinions that Clean Line couldn't control. Clean Line also likely discovered that Facebook is just a little too transparent, exposing a lack of public support for its proposals.  Keeping an army of sycophantic sock puppets active on numerous Facebook properties can be just so tedious.  It seems to us that Clean Line itself has plenty to "understand" about social media, before it is qualified to teach others.

Let's address the elephant in the room now, shall we?  It's the real reason for your educational conference and unhealthy fascination with us.  It's what makes us rock stars.  You are clueless about our formation, hierarchy, motivation and determination.  Sun Tzu once said, “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”  He'd be a great speaker for your conference, if he wasn't dead and all.  Maybe you can buy his book?  I hear it's a real page-turner.

So, you want to develop our relationship with attempts to be clever using outdated, supercilious names constructed from your industry's weird obsession with acronyms?  I'm truly hurt, EUCI.  As if labeling us as members of unacceptable groups would somehow help you develop a better understanding of us, one that will allow you to "handle" us all the way to permit denial?
Going BANANAs with NIMBYs – Best Practices in Dealing with Community Based Opposition Groups.
Increasingly, organizing public participation opportunities means having to handle
disruptive influences from community-based opposition groups - BANANAs (Build
Absolutely Nothing Anywhere near Anything/Anyone) and NIMBYs (Not In My Back Yard). This presentation will discuss experiences at Southern California Edison and
how the company has adapted to this new business environment. Southern California
Edison is currently experiencing one of the largest infrastructure capital investment
programs in company history. Driving this are multiple factors, including California’s
ambitious renewable energy goals and the need to replace aging infrastructure that
was constructed during the post-World War II boom. As a result, the opportunity for
community based opposition groups to develop has increased significantly. Recent
advances in technology have made it easier for community-based opposition groups to
organize and, more importantly, to strategize. With the opportunity cost of starting and
participating in such groups constantly decreasing, it is important for public participation practitioners to have a healthy understanding of how such groups are motivated and how to manage them effectively.  The discussion will provide the audience with best practices on dealing with community based opposition groups as well as tips on how to prepare internal, technical subject matter experts to effectively handle emotionally charged situations. These best practices are based upon the experiences of Southern California Edison’s local public affairs department.
Do tell how assigning people to silly fruit acronym name groups, and then disparaging them, accomplishes effective public participation in transmission siting?  Where we come from, that's just not polite, and won't win you any cooperation from the fruitbowl.  It's actually sort of insulting.  We don't really get it, but have been considering giving you all a fruity name of your own, and would like to know the rules of the game.  We've already come up with MIMPSY (Money In My Pocket, Screw You) to describe you, but fear it might not be quite fruity enough? 

As I'm sure you've heard, our favorite activity is holding bake sales.  If you ever find yourself overrun with overripe bananas, I'd be happy to share my kick-ass recipe for banana bread with you.  There's just so many things you can make from the clever and versatile banana!  Maybe you could hold your own bake sale, instead of a training conference, to raise cash!  Do let us know EUCI.  We'd be happy to fly to Houston to buy your cupcakes!

I do wonder though, since this is an educational workshop, what experience your instructor has organizing or strategizing with community-based opposition groups?  My guess would be none.  Last time I looked, SCE got it's butt kicked in Chino Hills.  The power companies are usually the ones on the outside of our groups, desperately trying to see inside.  You all have NO IDEA how sophisticated our organization and strategy has become... and that's the way we like it.  Expect the unexpected, transmission developers!

And if being called a fruit isn't insulting enough to "the public," you further besmirch us as "Mayberry" in your "Marketing to Mayberry" segment.
Marketing to Mayberry: Communicating with Rural America.
Communications and marketing outreach in small town America requires entirely
different tactics than those used with larger more metropolitan communities. Join this
conversation to learn some of the pitfalls to avoid and the strategies to deploy when
reaching out to small communities. Attendees will learn to prepare for the challenges of
engaging a rural setting, communicate in a conversational tone rather than corporate
tone, identify and engage credible  spokespersons in rural communities and understand which communications and marketing tactics to utilize.
If this wasn't so blatantly insulting, it might be fun to sit through.  What do you do, run the movie Promised Land and hand out Matt Damon masks?  Or maybe you simply try to teach these jerks some honesty and humility?  It's really not that difficult to communicate with "Mayberry."  What is difficult is getting away with lies and bad behavior in small towns, right, Jimmy?  Right, Clean Line?

You've simply outdone yourself this year, EUCI!  Since your conferences are fully accredited for continuing education credits by the International Association for Continuing Education & Training, we'll assume there must be some educational standards your conference content is required to meet.  We're concerned that you may be risking your certification and credibility by promoting professional failure as a "successful" best practice!  It's because we worry about your reputation that we'd like to help you out, EUCI.  We believe we could provide valuable assistance with this conference activity:
Mock Open House
Open houses are commonly used during the public outreach campaign through the
transmission siting process. They are used to communicate with the community, land
owners, stake holders and public officials and allow them to express their concerns
regarding the transmission lines. Effective, clear and concise communications are crucial
for the open house to run smoothly and successful. This mock open house will allow
key subject experts to run an open house and the attendees to participate in the “open
house,” showing effective forms of communication, how to answer questions and walk away with everyone being pleased with the outcome.
We graciously offer to provide a cast of crack "actors" to play the parts of the community, land owners, stake holders and public officials at your mock open house. We've been mocking these guys at their open houses for years, so we're quite experienced!  We feel this will add just the right touch of hard-to-replicate realism to the exercise and will guarantee a tangible, useful, hands-on education for your conference participants.  And, besides, nothing says fun like ignorant country bumpkins bearing torches and pitchforks!  They're just so unpredictable!

In all seriousness, EUCI, we're not sure how you're going to educate transmission developers to succeed when your teachers have failed the subjects they are attempting to teach.  You'd do much better with instructors from the community groups you are targeting for attendance.  But then again, why would we give away our secrets?  They're working so well to alter, delay, and cancel unneeded transmission projects.  We have made you our bit*subservient groupie*ch.  When we have our annual continuing education get-togethers, you're probably not going to be invited.  Sorry.

Best Regards,

America's Transmission Opposition
Bigger, Badder, Scarier
and Smarter... oh, so much smarter than you give us credit for...
22 Comments

Tension Between States and PJM Causes Higher Electric Prices for Consumers

10/14/2013

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What if states just checked out of their "voluntary" participation in the PJM cartel?  Would this signal a reversion to 1920s-era state-regulated electricity lawlessness, or will it be historically viewed as the important first step toward a modern, sustainable, affordable, and independent energy future?

Maybe we'll find out soon, as the PJM cartel and its 800-pound incumbent gorillas continue to rankle states chafing at their continued captivity in the increasingly expensive electricity zoo.

Following on the heels of the U.S. District Court for Maryland's decision that Maryland's RFP program to stimulate the building of new generation in state violated the Supremacy Clause of the Constitution several weeks ago, on Friday the U.S. District Court for New Jersey also found that New Jersey's LCAPP program violated the Supremacy Clause.  The second decision really is no surprise, if you read the first one.

The only bright spot is the court's rejection of the secondary argument that LCAPP also violated the Commerce Clause. 
Despite the abovementioned evidence, the plaintiffs fail to overcome the most persuasive evidence that substantiates the reasons the State is seeking in-state development. A significant portion of the trial focused on locational deliverability areas (LDAs). (Stipulated Fact ¶ 30). As previously noted, New Jersey is located in such an area that is known as EMAAC. In addition, there are two other locational deliverability areas within New Jersey known as PSEG and PS North (T. 1529, 3-13). Generally, these LDAs have higher capacity prices than other PJM areas due to transmission costs. Even the Plaintiffs agree that a capacity price cannot be set for an entire region. (Pl.’s Ex. 26, at 34). As a result, there is separation in price which is authorized by PJM and the Commission. The record as a whole supports the proposition that the closer the generation facility is to the delivery area, transmission costs will subside. As Mr. Herling concluded when discussing the reliability crisis, reliability issues could only be resolved in one of two ways – transmission via the Susquehanna Connection or additional generation in or near the location where the reliability issue will occur. (Def.’s Ex. 563, at 33) (emphasis added). As such, it appears reasonable that the Board would incentivize construction in areas where reliability concerns are in flux. As such, the Board has the authority to incentivize construction within New Jersey. What is good for the goose is good for the gander. As such, the incentive for community benefits to generators in New Jersey appears reasonable. Since Plaintiffs have not briefed or argued the commerce clause in such a fashion, the Court finds that Plaintiff has not met its burden of proof.
This should come in handy in the future when PJM and big wind try to force eastern states to pay for new transmission lines in Kansas and Iowa by preempting any preference for in-state renewables to attain RPS goals.  But that's an argument best left for another day...

If you've read both of these court decisions, you may have noticed that they manifestly document that, despite its protestations to the contrary, PJM does in fact and indeed control where and when generation gets built or retired.  And this has always been the rub with PJM's failed markets and the reason they don't work.

PJM's markets are supposed to create incentives for generation to develop where electricity prices are high.  PJM's markets don't work.  This is because PJM will always force a transmission "solution" to artificially lower prices before the market can work.  Why?  Because PJM is a transmission building cartel, therefore the only tool PJM has is a hammer, and every problem looks like a nail.  Because PJM builds new transmission before new generation has a chance to develop, PJM controls the development of generation.

And when PJM builds new transmission to lower prices in a particular area, everyone in PJM pays.  However, when new generation gets built in Maryland or New Jersey, it's paid for by consumers in those states who use it.  PJM's preference for transmission costs YOU money.

And if you think the states of Maryland and New Jersey are the only ones calling foul on the PJM cartel's deference to its incumbent utilities, check out this little back and forth between the Chairman of the Pennsylvania PUC and PJM's Board of Managers.  The PA PUC is irritated at the way FirstEnergy continues to game PJM's markets with its plant closure game.

Chairman Powelson Letter to PJM
PJM's "shocking" Response to Chairman Powelson
Chairman Powelson Threatens to Go to FERC

Sounds scary, but FERC is what gives PJM its power to serve its incumbents first.  Going back to the 1935 law that gave FERC its power, we might ask why FERC has seen fit to delegate that power to regional transmission organizations that are merely thinly disguised cartels of for-profit utility interests?  When did the regulated become the regulator?

Not that any of this is going to matter much 10 years from now when distributed generation and consumer-owned, onsite energy production has made PJM, FERC and utility holding companies that control them about as useless as teats on a bull.
0 Comments

FirstEnergy Customer Education Community Meetings Across West Virginia This Week

10/12/2013

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The Coalition for Reliable Power, the Jefferson County NAACP and The Mountain Institute are partnering to host three educational meetings for Potomac Edison and Mon Power customers across the state this week.

The meetings are a prelude to the WV Public Service Commission public comment hearings on meter reading and billing practices of the FirstEnergy affiliate companies scheduled for October 23-25.

The educational meetings are designed to:

1.    Bring you up to speed on the PSC's General Investigation.

2.    Inform you about the structure, process and participation at the public hearings.

3.    Explain a typical FirstEnergy electric bill and how you can become a proactive customer to protect yourself from future billing problems.  Bring a copy of your most recent bill so you can participate in our group exercise to find out how to calculate exactly how much you should owe, and what to do when your bill isn't accurate.

4.    Provide an opportunity to ask questions and share your concerns with others who may be experiencing the same issues.

Listen in on Monday morning, October 14, at 9:45 a.m. when the Coalition's Keryn Newman will be discussing the upcoming meetings on WRNR Talk Radio.

And be sure to attend the meeting closest to you!

Charles Town, WV
October 16, 6:30 p.m., Fishermen Hall, Corner of South West and Academy streets 

Morgantown, WV
October 16, 6:00 p.m., Morgantown Public Library, 373 Spruce Street

Arnoldsburg, WV
October 17, 7:00 p.m., Arnoldsburg Community Building, Arnoldsburg

See you then!
0 Comments

How Bad Transmission Projects Die

10/11/2013

2 Comments

 
This recent editorial in the Concord (NH) Monitor gives a look at the death throes of a rather tenacious merchant transmission project.  Northern Pass has hung on long past the tipping point, where a prudent investor would have given up and written it off as a loss.

Just how much profit is expected from this project that its owners can continue to spend money hand over fist trying to influence necessary approvals?

As the editorial opines, "...it’s time to acknowledge the obvious: The wheels have fallen off the bus."  Northern Pass is politically unpopular in New Hampshire, and there's nothing the company can do to change it, try though they may.
In recent weeks Democratic Gov. Maggie Hassan and state Senate Republican Leader Jeb Bradley have weighed in and signaled that, contrary to PSNH’s unrelenting public relations campaign and full-page newspaper ads, the Northern Pass is not a done deal.
Still, Northern Pass persists, like Rumplestiltskin having a tantrum.  "Support Clean Energy" is just greenwashing of the real truth, which goes more like this:  "Support Transmission Owner Profits."  Of course, the latter just doesn't have the same ring to it, does it?
There has also been some clear evidence in the past week that nearly all the Northern Pass supporters are those with a direct financial interest, including those at the Department of Energy hearing in Concord wearing “Support Clean Energy – Support Northern Pass” T-shirts. One estimate of the audience at the Sept. 24 hearing in Plymouth was 650 opposed to Northern Pass, eight in support.
When it couldn't convince the people of New Hampshire to willingly drink its koolaid, Northern Pass resorted to intimidation and bullying, and when that didn't work, it was time to simply create an appearance of public support, hoping it would be enough to convince regulators.
Northern Pass offered only bogus informational sessions, with a police presence at the door and no unscripted questions or comments allowed. Citizens were ushered out the door if there was even a hint of skepticism on their lips, and the follow-up was always the same boilerplate letter to the editor from Northern Pass, thanking the locality for the chance to “clear up any misconceptions you may have had about the project.
Ultimately, these tactics don't work.  The public wants Northern Pass to bury the line, or not build it at all.  Of course, burying the line will eat up all Northern Pass's profits.

This is the lesson to be learned about imported renewables.  They're not cost effective and, ultimately, merchant business plans that rely on importing renewables long distance via overhead transmission lines must fail.  Localized, small-scale, sustainable renewables are more cost effective and widely supported by the public.

It's time to kill this project for good.
2 Comments

AEP, Wild Animals, Eminent Domain and Cyber Stalking

10/9/2013

6 Comments

 
Looks like one of those "what doesn't belong" puzzles, doesn't it?  Unfortunately, it's not.

This story comes from Gentry, Arkansas, home to the Wild Wilderness Drive Through Safari.  AEP's engineer drew a transmission line through a portion of the safari on his power line routing etch-a-sketch.  Perhaps the engineer didn't understand that a drive through safari means that there are wild animals roaming loose through the area?  Or maybe he just doesn't care.  After all, he's not the one who may be eaten by a lion while constructing this project.
The people of Gentry have taken up the fight to save or replace the portion of the safari that will be made useless by the new 345kV power line running through it.  See their website here.

AEP says they can't move the power line out of the park because the route has already been approved by the PSC.  Instead, they are dragging the safari owner (a former AEP employee who didn't initially object to the route for fear of retaliation) through expensive and contentious eminent domain proceedings that will exceed the cost to AEP of simply filing a revised route at the Arkansas Public Service Commission.  It's pure and classic utility behemoth stupidity, where the tail regularly wags the dog.

Instead, AEP is trying to fix things through intimidation and censorship.  Local media has been avoiding this story because they also fear retaliation from AEP.  Hey... AEP... censor this...  :-)

In addition to efforts to effect a media blackout, AEP has been cyber stalking the community members leading the movement to save Safari 4.  One of them recently found this notification when logging into her Linked In account.
There's no reason a "Manager of Public Relations and Communications" at AEP would be looking at this woman's profile, except for the fact that she started a petition to save the Safari.  Why, AEP, WHY?  Why are you cyber-creeping on this woman?  Planning to use her professional information for future intimidation?  Or is AEP's manager just some kind of random cyber-creep doing his dirty deeds on company time and with company equipment?

Can't you just see the inter-office memo that may have gone out last week?

To:            All AEP Transmission Employees
From:        Nick Akins, CEO
Subject:    Cyber-stalking Opponents of Our Projects

It has come to my attention that some of you have been gathering information for our AEP transmission project opponent dossiers while signed in to your personal Linked In accounts that bear your job title and AEP's logo.  Please be aware that your profile views show up on the opponents Linked In pages!  In the future, please make up a fake Linked In profile to use for AEP-authorized cyber-stalking.  I suggest using the name Neil Peart, drummer for the band Rush.  He's way, way cool and I want to be just like him when I grow up!

Remember:  Safety and Transparency First!

Embarrassed yet, AEP?

You should be.  What do you think the jury hearing the safari eminent domain case next week is going to think of your heavy-handed tactics?
6 Comments

A FirstEnergy Lullaby

10/9/2013

0 Comments

 
“We’re still just reviewing (the order),” MonPower spokesman Todd Meyers said. “Our legal department has been spending all night and even today as we speak looking at it.”
Go to sleep, go to sleep, go to sleep crooked lawyer
Lay thee down now and rest, may thy slumber be stressed
Lullaby and good night, Tony the Trickster's delight
May devils haunt your dreams, and disturb you with their screams
They will guard thee at rest, thou shalt wake up depressed
Go to sleep, go to sleep, go to sleep greedy shyster....

Your work here is done.

0 Comments

WV PSC's PYMWYMI Harrison Transfer Conditions

10/8/2013

1 Comment

 
FirstEnergy has been preternaturally verklempt about its "victory" in the Harrison Power Station transfer case at the West Virginia Public Service Commission.

Reporters have been hard pressed to get much more than the usual "we are reviewing the decision and will respond appropriately" line.  However, congratulations are due to the rather clueless reporters at WDTV, who inspired Toad to say something different, but equally clueless.
"Once we review this agreement will are hoping that it will lead to a decrease in rates for customers right off the bat with a reduction of about a $1.50 to the average residential customer." said Todd Meyers, First Energy Spokesman.
Right, Toad, but that "decrease" is only a temporary result of taking the entire credit for the sale of Pleasants in the first year.  Once that $25M credit has been used to reduce rates, it's gone for good, and so is the rate "decrease." 

So, what is FirstEnergy so afraid of in the PSC's favorable Order?  The PSC has allowed the sale and twisted itself in legal knots to do it.  What's not to like?

It's the "Put Your Money Where Your Mouth Is" conditions the PSC added to the transaction.  FirstEnergy's evil henchmen and their bean counting lap dogs are busy running the numbers and scheming up ways to manipulate the conditions so that they don't end up losing any money in the deal.

FirstEnergy told the PSC that the transaction would not damage the credit or financial position of Mon Power & Potomac Edison.  FirstEnergy also told the PSC that recovery of the acquisition adjustment ($589M of funny money added to the value of Harrison at the Allegheny Energy/FirstEnergy merger) was proper under FERC regulations.  They promised the PSC that Harrison would be able to sell excess generation not needed by Mon Power & Potomac Edison at a hefty profit, which would flow back to benefit the West Virginia ratepayers.

The PSC wants FirstEnergy to "Put Your Money Where Your Mouth Is," therefore, the PSC added the following conditions to its approval of the transaction:
1. First Energy and Mon Power must agree through written verified statements filed in the record in this case within ten days of the date of this Order that they understand and agree that if First Energy does not make additional equity investment in Mon Power to cover the decline in equity caused by the write-off of the $332 million (pre-tax) Acquisition Adjustment, Mon Power must agree not to pay, and First Energy must agree that it will not receive, any dividends from Mon Power until the equity to total capital ratio of Mon Power returns to forty-five percent.

FirstEnergy is going to have to cover that $332M write-off with an equity contribution to Mon Power, or else they're going to have to forgo any dividends from the company until the write-off amount is restored to Mon Power's capital ratio.  Obviously, the PSC didn't agree with FirstEnergy's contention that the transaction wouldn't damage Mon Power's credit ratings.  Poor ratings costs ratepayers money through increased credit costs.  The PSC wants FirstEnergy to Put Your Money Where Your Mouth Is.  Ut-oh!  How is FirstEnergy going to agree to this now, then plan to violate it later?  What creative bookkeeping or legal nonsense are they going to commit?
2.    First Energy, AE Supply, Mon Power and Potomac Edison must agree through written verified statements filed in the record in this case within ten days of the date of this Order that they understand and agree to allow the initial $257 million Acquisition Adjustment to be subject to adjustment through a refund from First Energy or AE Supply if the FERC determines that purchase price paid by Mon Power exceeds the fair market valuation of Harrison. If the FERC makes such a determination, the portion of the $257 million Acquisition Adjustment that exceeds fair market value will be returned to Mon Power by either First Energy or AE Supply, and the refund will be credited to the Acquisition Adjustment account.
I find this one most puzzling.  Is FERC going to come motoring into West Virginia just to evaluate the purchase price?  Is there a pending FERC case that's not mentioned in the Order?  Is there a case that needs to be filed?  By whom?  FERC does not allow the recovery of acquisition adjustments.  But, of course, that's not what the condition says.  But, obviously, the PSC was not satisfied with FirstEnergy's insistence that recovery of acquisition adjustments is allowed by FERC as part of purchase price, so the PSC wants FirstEnergy to Put Your Money Where Your Mouth Is.
3.  First Energy, Mon Power and Potomac Edison must agree through verified written statements filed in the record in this case within ten days of the date of this Order that they understand and agree that the return on, and return of, the $257 million Acquisition Adjustment will be allowed in base rates only to the extent that fifty percent of the net margins from off-system transactions from the additional Harrison capacity acquired by Mon Power will support that return. The full return requirement will be allowed each year subject to prospective adjustment based on a review of the achieved net margins from off-system sales in relation to the amount of return requirement built into the initial surcharge, and thereafter base rates. During the initial Surcharge true-up period, and thereafter when the return component on the Acquisition Adjustment is built into base rates, we will consider fifty percent of net margins on off-system sales attributable to the additional Harrison capacity as available for return on, and of, the remaining balance of the $257 million Acquisition Adjustment authorized in this case. This will not affect the ENEC calculations. If the monthly accumulation of return requirements previously built into the initial surcharge and thereafter base rates of MPPE between base rate cases exceed the allowable amount based on the achieved net margins on off-system sales, a prospective adjustment credit will be embedded in prospective base rates, If the monthly accumulation of return requirements previously built into the initial surcharge or base rate of MP/PE between base rate cases is less than the allowable amount based on the achieved net margins of off-system sales, no prospective adjustment will be made to base rates. Each base rate case will reset the balance of the net return components to allowable amount on the achieved net margins of off-system sales to zero.
This one looks really confusing, but it's not.  FirstEnergy is only allowed to recover the remaining $257M acquisition adjustment, along with interest on same, if the amount recovered is no greater than 50% of the profit margin from Harrison power sales to other utilities during the same period of time.  This means that FirstEnergy must "Put Your Money Where Your Mouth Is" and make the sale of Harrison's excess generation as profitable as possible.  This is going to be a real problem for FirstEnergy.  After all, PJM's energy market prices are depressed... that's why FirstEnergy wanted to "sell" Harrison into West Virginia's regulated system in the first place!  The evil empire is undoubtedly sitting around the poker table, wreathed in a cloud of cigar smoke, devising new and different ways to manipulate PJM's markets.

In addition, the PSC has taken exception to FirstEnergy's proposed Revised Affiliate Agreements. 
The Commission will not authorize Mon Power and Potomac Edison to enter into the Revised Agreement at this time because of concerns regarding certain aspects of the Revised Agreement, including (i) operation of public utility generation and market-regulated plants of First Energy by FE GenCo, (ii) separation of responsibilities for economic dispatch, market offers, and planned outages between utility regulated plants with captive customers and market-regulated plants, (iii) whether provision of generation services by FE GenCo will be provided at cost or at higher market-based price if that exceeds the FE GenCo costs of operating the Mon Power generation plants, and (iv) liabilities that FE GenCo may have if there are claims or damages related to the Mon Power plants resulting from operating decisions made by FE GenCo,
The agreements allow FirstEnergy's unregulated generation affiliate to "manage" Harrison.  In this way, FirstEnergy can continue to stick it to the union workers who keep the plant running, and there's not a thing the PSC can do because it does not regulate FE GenCo.  The PSC also has corporate separation concerns about FirstEnergy manipulating energy markets.  Welcome to the club, fellas! (not that we actually expect you two to DO anything about it if that occurs)  The PSC has ordered a separate proceeding to deal with these agreements.  In the meantime, Harrison will continue to operate under existing agreements.
So, now you know why Toad is huddled under his desk, sucking his thumb, and waiting to be reprogrammed.

Be careful of the lies you spin, FirstEnergy, you might just have to live with them.
1 Comment

WV PSC Approves Harrison Settlement

10/7/2013

0 Comments

 
WHEEEEEEEEEEEEEEEEEEEEEEEEEE!!!

Unconfirmed Albert and Still Expired McKinney have bailed out Ohio-based FirstEnergy at YOUR expense.
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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.

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