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Permitting Pipe Dreams

10/6/2022

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Slippery Joe Manchin's transmission permitting deal may be dead, for now, but ignorant permitting pipe dreamers refuse to wake up.  They keep talking about how they need to make electric transmission permitting a federal affair.  And they think they will do it soon.  Remember that when you go to the polls next month!

Here's the thing... federal authority to site and permit transmission is only going to delay things further by giving opponents a whole new toolbox of federal regulations and appeal opportunities.  I challenge these idiots to find JUST ONE electric transmission project that was expedited when the federal government got involved.  They can't do it.

Do we really "need" new transmission?  The premise seems to be:
President Joe Biden needs to run transmission lines through deserts and over mountains to meet America’s climate goals.
How so?  New transmission connecting new intermittent generators to the system that could supply a small amount of additional power just isn't needed and is, in fact, the cause of our grid becoming increasingly unreliable.  Because our electric demand is not currently increasing to require additional generation, there is no need to add any, or at least not to the scale imagined by the ignoramuses.  All this new dream power, propped up by your tax dollars, must force current power out of market.  The electric system is a "just in time" market where generation must meet demand at all times.  You can't put "extra" power from new generators in a warehouse.  Therefore, when a new intermittent generator is connected, an existing one must close.  All the closures lately consist of what is known as "base load" power -- the big power plants we've been relying on for years to generate power when we need it.  Without base load, we can only use power when it's available, which is not necessarily when we want it.  The idea that if we build enough transmission to move every intermittent electron generated anywhere to anywhere else where it can be used is something that only works on paper.  Without base load power, this just can't work.  It's a supply/demand house of cards.

How far are we going to go down the road of building a bunch of generation and transmission that can't serve our needs before someone finally admits it's nothing but a giant scam designed to fill elite pockets with taxpayer and ratepayer dollars.  When are we going to listen to the real experts who are running the power grid?  I'm talking about those guys in the control room, not the stuffed suits whose bonuses are tied to profits.  We need to stop listening to self-designated "experts" from environmental groups, woke universities, and elites like "farmer" Bill Gates (who apparently also doubles as a power engineer... who knew?)

This stuff needs to stop before we're all sitting in the dark.  But here's the thing... the reasons that new electric transmission keeps getting delayed is, first and foremost, opposition from affected communities.  There's nothing federal permitting can do about that.  Social spending and green new deal legislation masquerading as "inflation reduction" purports that paying bribes to affected communities in exchange for quiet acceptance of impacts from transmission that doesn't serve them is a solution.  No, it's not.  Paying a town to accept a burden on the private property of a handful of its residents doesn't change anything.  In fact, it just ratchets up suspicion and mobilizes the entire community against the project.  Just because bribes are offered doesn't mean local elected officials would accept them.  Key word:  elected.  So, instead of paying people to accept impacts, how about not creating impacts in the first place?  New transmission ideas by smart companies are proposed to be buried on existing linear rights of way, such as highways or rail lines, and these projects are sailing through approvals without delaying opposition.  Why not legislation to inspire buried projects that don't create impacts?  That would be a whole lot faster!

The National Association of Regulatory Utility Commissioners, a professional organization of state utility regulators, recently sent a letter to slippery Joe and his Congressional pals that hits a bullseye on the reasons why electric transmission projects take so long to build.  Who knows better than the officials who oversee the permitting process?  I also agree with it completely.  After more than 15 years working with various transmission opposition groups, this has been my experience as well.  Here's a quote from the letter:
NARUC contends that the major impediments to siting energy infrastructure, in general, and electric transmission, in particular, are (in no particular order): 1) the great difficulty in getting public acceptance for needed facilities, which in turn drives state and federal political opposition; 2) federal permitting issues, especially in regions where large tracts of land are federally owned; 3) potential customers for the project being considered do not need or want the additional electricity, thereby making the project uneconomical; and finally, 4) cost and cost allocation issues, which may make alternatives to building transmission more economical and/or more environmentally sound. With regard to federal permitting issues, these will only be exacerbated should FERC become more involved in siting, as is contemplated in the discussion draft, because opponents will now be able to use the National Environmental Policy Act (NEPA) to slow or derail a project, as has been done quite successfully in FERC jurisdictional pipeline proceedings. This suggests that regardless of where siting authority falls –with state government, the federal government, or both –siting energy infrastructure will not be easy and there will be “no quick fix.”
Bang!  That's it!  Opposition, speculative merchant projects, impacts/costs without benefit, and federal involvement are what delay transmission permitting.  Federal authority can't fix this broken system.  It's like repairing a broken radiator by hitting it with a hammer.

The power-drunk environmentalists are slowly killing their Precious.  Their thirst for power over others is encouraging them to select the most unworkable option.  The transmission cheerleaders are completely and utterly clueless about what causes and motivates transmission opposition, therefore they continue to choose the wrong fix.  Is this really about climate change?  Or is it just about elitism, greed, and political power?

All the wokester morons can stop their alarmist rhetoric, it's not working on the smart people:
“We need to get a better balance because we just can’t take 10 or 16 years to build a really good transmission project. It is not tolerable,” said Ken Wilson, an engineering fellow at Western Resource Advocates, an environmental group. “If that continues to be the norm, we’re not going to have an environment to worry about. It’s going to be burned up and dried up, and the stuff we wanted to protect won’t be there anymore.”
Rrrrrright... only if we build a whole bunch of new transmission within 10 years can we stop everything from burning up?  No.  Not at all.  Never happening.  It just doesn't make sense.  And every time the little boys cry wolf, a bunch more smart people quit believing in this climate nonsense.  Climate change is a gradual thing, always has been.  These artificial deadlines by which time everything is going to be burned up and dried up keep shifting, have you ever noticed that?  They keep being delayed, just like a "really good transmission project", because the feared burning planet never materializes.  It's just scare tactics to get you to go along with eating bugs, having your travel limited, and learning to live without electricity or power of any kind.  Since climate change is gradual, so should be any "transition" to "clean" power.  It doesn't have to be artificially pushed along by social sacrifice and higher taxation.

We can only completely give up fossil fuels when we have a new kind of base load to replace them.  Wind and solar are not it, even at utility scale and connected with trillions of dollars worth of new high voltage transmission.
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New Jersey Wants Other States to Pay for its Environmental Laws

10/5/2022

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As Gomer Pyle used to say:
RTO Insider reports:
New Jersey officials hope to engage in “horse trading” with other PJM states over the cost allocation of transmission needed to meet their climate goals, a key state regulator said last week.

“The other clean energy states and PJM are looking at billions of dollars of transmission upgrades if we do it the way we’re doing it now, when we can meet all the needs of the entire PJM region at approximately the same price,” he said. “So there’s a lot of room for horse trading, if we can get the parties to the table.”

The SAA leaves New Jersey “almost in a hostage situation at the moment,” Silverman said. “The transmission projects that we are planning benefit many states in PJM; they will see lower production costs as a result of these upgrades. But because of the way the system works, we are solely responsible for the cost. That needs to change.”

Oh, please, you're a hostage of your own actions, New Jersey!

New Jersey asked PJM to solicit transmission proposals that would support offshore wind under PJM's "State Agreement Approach" that allows a state to put new transmission in PJM's plan, but only if they agree to pay for it.  ALL OF IT.  One hundred percent!

But now that New Jersey has "estimated costs would be $5 billion to $34 billion" it suddenly wants other states to pay for some of it because they may receive some fake "production cost" benefits that they never asked for and don't need (if they did, PJM would plan a transmission line outside the SAA).

Benefits are not "benefits" when you don't need them.  It's like charging you for a dessert you don't want or need, but it looks good on the table and you might just take a bite.

So, what do you think?  Did New Jersey honestly intend to pay for these offshore wind lines itself before it found out how expensive it was going to be, or was it just pretending all along?  Did New Jersey think that it could influence other states to take a bite once the dessert was on the table?

Sneaky, sneaky, but I'm sure some PJM states won't have any problem at all saying "no" and letting New Jersey pay for its own legislative boondoggles.

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Invenergy Salivates Over Government Handouts

10/3/2022

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Who didn't see this coming?  In last year's "Infrastructure" legislation, greedy transmission merchants inserted a provision whereby the federal government can become a fake "customer" of merchant transmission and pay the merchant with your tax dollars to transmit absolutely nothing to nobody. 

Not being able to secure any customers willing to sign contracts to pay to use merchant transmission has been a problem for the speculative merchants that have been pushing to construct hugely expensive boondoggle transmission lines that nobody wants to use.  A merchant transmission developer, first and foremost, takes on all risk and must pay for its project with voluntary customers.  There can be no backstop funding for merchant transmission, or it's no longer merchant transmission.  It becomes transmission with captive customers that must be regulated to protect the customers.  It can only charge "cost of service" rates that are subject to inspection and challenge by customers and regulators.

But reality and fairness never stops legislators from making the foolish laws greedy private interests want in order to fill their pockets.  It's only our courts that can stop laws that don't make sense, or overreach in some way.

Here's what Invenergy recently had to say about the IIJA's Section 40106 that orders the U.S. Department of Energy to become a "voluntary customer" of merchant transmission that doesn't have enough customers to be financially viable:
Under the Department of Energy’s Transmission Facilitation Program, as envisioned in Section 40106 of the Infrastructure Investment and Jobs Act, the Department of Energy may serve as an anchor tenant on new and upgraded transmission lines, by buying up to 50% of the planned commercial capacity of lines for a term of up to 40 years. Yet, under MISO’s interpretation of Attachment FF and BPM 20, a merchant transmission project with a Department of Energy contract, and meeting Invenergy’s other suggested indicia of being sufficiently advanced stage, would still not be accounted for in MISO’s transmission planning processes unless it had an executed interconnection agreement with MISO or was included in a state or utility IRP. This cannot be a just and reasonable interpretation of MISO’s Tariff and BPM language which requires MISO to “analyze the performance of the Transmission System in meeting both reliability needs and the needs of the competitive bulk power market, under a wide variety of contingency conditions,” to “give full consideration to the needs of all Market Participants,” and consider “a wide range of potential conditions that comply with Federal, State, local and transmission owner reliability standards and public policy mandates . . . as well as other industry trends,” as Invenergy quoted in its Complaint.
'scuse me there, Invenergy... "reliability needs" and "needs of the power market"?  Just because the DOE may sign a contract for free lunch payments to merchant transmission owners, it doesn't mean they intend to take service of even one electron over the transmission line.  And if there is no need for the electricity and/or no customers actually taking service, there is no "need."  There is no market.  There are no actual customers.  And since merchant transmission is a market-based need gamble, no customers means no market.  Just because greedy merchants pulled the right legislative puppet strings to add a legally dubious section to proposed legislation does not create a "need."

And because Invenergy is salivating so hard over Section 40106, I simply have to pop their balloon.  The DOE held a public comment period on how it might implement this ridiculous new law earlier this year.  The DOE asked for responses to answer a number of questions.  Here's one:
Is it advisable for DOE, when selecting eligible projects for capacity contracts, to prioritize projects that have a certain percentage of capacity already subscribed? If so, what should that percentage be? What level of commitment (firm supply versus other types of capacity subscription) should DOE require eligible entities to demonstrate to be selected for a capacity contract? How should applicants be required to document such commitments? Should DOE's capacity be capped as a ratio of the firm subscription obtained before the execution of a capacity contract? If so, what should that ratio be?
DOE only has $2.5B in its revolving slush fund and it wants to rotate it to new projects on a timely basis.  Does DOE want to blow its whole wad on a merchant project like GBE that only has something like 4% of the capacity subscribed and no real prospects?  As if, Invenergy!

Meanwhile, Invenergy asks Missouri and Illinois (and later Kansas and Indiana) to give them permits and eminent domain authority to take land from the good citizens of those states in order to build a transmission line that nobody may ever use.  That's not a "public use."  Until GBE has real customers (not obligations to pay for absolutely nothing from DOE) it's not a public use.  And Grain Belt Express/Invenergy completely fails to mention any of this to the state regulators!  Invenergy just keeps talking about "need" and other meaningless platitudes.

What else did Invenergy have to say in its forbidden Answer to an Answer at FERC?  This very short fictional story caught my eye:
MISO TOs cite to the Rock Island Clean Project as an example of why advanced-stage merchant transmission should not be accounted for in MTEP/LRTP base case analyses.  However, the Rock Island project never had final, non-appealable permits in any state. See Illinois Landowners Alliance, NFP v. Illinois Commerce Comm’n, 2017 IL 121302 (2017) (finding that the owner of the proposed merchant transmission project was ineligible under Illinois law to obtain a required certificate of public convenience and necessity). Rock Island subsequently discontinued efforts in neighboring Iowa in light of the Illinois developments. In contrast, Grain Belt Express has final, non-appealable permits in Kansas, Missouri and Indiana.  Although Grain Belt Express is making minor modifications to those permits approvals, which is typical for new project development, the underlying approvals are sound and Grain Belt Express has significantly advanced the development of the project since securing those permits including securing rights of way and land.
RICL wasn't abandoned in Iowa simply because it lost its case at the Illinois Supreme Court (big time!)  Invenergy seems not to be aware that the Iowa legislature made a law in 2017 that prohibits eminent domain for above-ground merchant transmission lines.  This crazy town revised history fictional story doesn't even make sense.  Without approval of those "minor modifications" (which are actually material changes) GBE doesn't have a working project.  The Grain Belt Express cannot be built without approval of "minor modifications" to its existing permits, and considering that one of those "minor modifications" asks to use eminent domain on a whole bunch of new landowners, there's really nothing "minor" about it.

When the new laws greedy corporations make don't work with the fundamentals of regulation, it's nothing but a hot mess where nothing gets accomplished.  Drool all you want!
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Transmission Fan Fan Fic

10/2/2022

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TFFF.  Transmission Fantasy Fan Fiction can be the only explanation for this article in S&P Global.  Some "researcher" with degrees in meteorology and mechanical engineering did some "research" into possible transmission projects and came up with something that can only be an unholy cross between fan fiction and fantasy sports.

This is not new information that we don't know about.  It's simply the fantasy creation of an unqualified "researcher" who was too lazy to consider the actual status of dead transmission ideas, or to find out what regional transmission organizations are planning.  And I'm pretty sure he doesn't even know the difference between regionally planned, cost allocated lines and merchant transmission.

First, there's this:
Perhaps the most noteworthy transmission project in NextEra's portfolio is the Oklahoma/Arkansas portion of the Plains and Eastern Clean Line high-voltage direct-current, or HVDC, project. The project has had a tumultuous history, with the Tennessee Valley Authority backing away from the project in 2017 and the Energy Department terminating its participation in 2018. NextEra acquired Plains and Eastern Clean Line Oklahoma LLC in late 2017. Connecting Oklahoma and the state's formidable wind generation to Tennessee, the line would help alleviate growing wind curtailment in SPP while delivering potentially low-cost wind energy to the Southeast region. The project's status is up in the air.

HVDC transmission lines such as the Plains and Eastern Clean Line could emerge as a crucial piece of the clean energy transition. Although typically more costly than their AC counterparts, HVDC lines can carry more capacity across long distances while mitigating electricity losses, allowing for the transfer of wind and solar power from sparsely populated regions to urban metropolises hundreds of miles away. The Plains and Eastern Clean Line would run 720 miles and carry more than 4,000 MW of energy.

Adam, you complete and utter dumbass!  NextEra only bought the Oklahoma portion of the project, which was only nothing more than an idea and a random collection of transmission easement options.  I'm pretty sure NextEra's intended use for that project has long ago expired.  More importantly, any easements Clean Line acquired in Arkansas have since been released back to the property owner.  There is no transmission project across Arkansas, so there is no connection.  This is just one guy's stupidity and lazy "research".  It doesn't mean Plains & Eastern is coming back.  It's dead.  Forever dead.

And then there's this:
Additionally, a handful of major HVDC transmission projects are in planning, with renewable integration and transmission serving as a major driver for their development. The 550-mile SunZia Southwest Transmission Project being developed by Pattern Energy Group LP would connect Arizona to New Mexico, which has become a hub for renewable energy development. The 780-mile Grain Belt Express transmission line runs from Kansas to Indiana, eventually hooking up with the Pioneer Transmission project. Being developed by Invenergy LLC, the $7 billion project is expected to have a potential capacity of 5,000 MW.

MISO recently announced a major transmission upgrade project expected to cost $10.3 billion. The undertaking involves upgrading 18 different transmission lines and will reportedly help support 53 GW of new wind, solar and battery storage capacity across the region.

No, there is not a new project being built to connect with GBE.  Pioneer Transmission is an old idea that was never finished.  This three segment project, dreamed up in the early teens, seems to have been abandoned after the building of just one segment.  According to its owner:
The remaining phases of the Project ("Segments 2 and 3") are under evaluation by MISO and PJM as part of the next planning review cycles.
Which means they are stuck in regional planning cycles that they'll probably never get out of.  And why should PJM or MISO ratepayers pay to construct the sections of the project that connect with the Sullivan substation?  GBE wants to connect at Sullivan, and if that interconnection is ever approved, GBE would be required to pay to construct these segments so that its project doesn't overload the transmission system.  This is why this "connection" imagined by a really bad "researcher" is never going to happen.

The problem with this "research" is that the author is lazy or incompetent, or both.  He didn't look in the right places to find out the actual likelihood of the outdated project ideas he found on some old list and tried to click together like mismatched Legos.  Sort of reminds me of this complete and utter doofus, who gushed about "investment opportunities" for merchant transmission projects but actually had no idea what he was talking about.  No wonder our economy and investments are in the toilet with "researchers" like that advising us!

The transmission fantasy fan fiction "report" concludes like this:
Major transmission projects, particularly those that span multiple states, get caught up in arduous siting and permitting processes. The Grain Belt Express project, for instance, has been in the making for over a decade now. The Federal Energy Regulatory Commission is taking steps to ameliorate these preliminary planning hurdles. Still, without continuous diligent efforts to expedite grid infrastructure upgrades, industry stakeholders will struggle to meet state and federal clean energy goals.
Adam, you ignoramus.  There's nothing FERC planning can do for the Grain Belt Express.  It's a merchant transmission project.  It is not part of any FERC-jurisdictional plan.  We don't need to "expedite" transmission.  The only rush here is big wind and big solar developers trying to fill their pockets with big government cash before this big charade comes crashing down on their big heads.  Wind and solar are not sustainable energy sources.  We cannot power our nation with only solar and wind.  Even pretending we can is wasting trillions of dollars attempting to build new transmission to connect it all.  Energy generation is much like fashion fads.  Big wind is already going out of fashion in favor of big solar.  Even GBE is now claiming that it will bring Kansas solar and wind to eastern states.  The next big thing is out there.  Let's hope it arrives before we waste too much money chasing transmission fantasy fan fiction stories.
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As The Phrase Turns...

10/1/2022

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It's time for a brand new episode of this season's most riveting new drama, As The Phrase Turns...

At the end of our last episode, our protagonist had filed a Motion to Strike Inadmissible Legal Conclusions and Hearsay from the Testimony of Invenergy witnesses at the Illinois Commerce Commission.  This was because a non-lawyer Invenergy witness made legal conclusions in her testimony, purporting that Invenergy could legally promise the ICC that it would not seek cost recovery for the project from Illinois electric ratepayers without first seeking permission from the ICC.  The Motion also asked to strike a portion of Invenergy testimony that was hearsay (and also an inapt non-lawyer legal conclusion).  The Motion said Invenergy's promise was about as useful as zilch, give or take bupkus.

Unfortunately, Invenergy's uninspired legal counsel has seen fit to file a reply.  It was really hard to stay awake through all six pages (which seemed more like 60).  Unless you're looking for a sleep aid, don't bother.  The reply basically says that the ICC's rules of evidence are so relaxed that pretty much anything can be submitted as evidence as long as "...it is of a type commonly relied on by reasonable prudent persons in the conduct of their affairs."  So, according to Invenergy, there are no rules... it's just a free-for-all. 

The defense to hearsay did tickle my funny bone though.  It said,
Zotos claims that an excerpt from Sane’s testimony should be excluded as hearsay without even addressing the questions to which Sane is responding (or even providing the Commission with citation thereto).
Questions?  Oh, c'mon!  That whole question & answer thing is a charade!  It's not like some impartial fact finder is asking objective questions and expecting a truthful answer.  The attorney who writes the whole thing stacks the questions and answers to carefully support the party's desired conclusion. 

I'm not sure why they even bother with that format anymore.  It's not like it actually fools anyone.  I had a lot of fun once cross-examining a witness about the reality of testimony that he finally admitted he didn't write, and didn't even understand.  It was done by the company lawyer and another employee of the company with more expertise.  So, why didn't the company put up the testimony of the more knowledgeable employee?  Because he didn't have clean hands and was afraid of cross.  At any rate, sorry about that.  The coffee is high test this morning.

Zotos attornney Paul Neilan filed a reply to Invernergy's banal dreck and, once again, managed to make this drama pop.  It starts out with the premise
No Reasonable, Prudent Person Would Rely on Legal Conclusions Offered by Non-Lawyers in the Conduct of Their Own Affairs.
That's the rule, right?  Anything goes as long as it is something a reasonable, prudent person would rely on to make a decision.  We'll assume the ICC judge is a reasonable, prudent person who makes reasonable, prudent decisions for a living.  So, would our judge do this?
Under GBX's logic, a person faced with a legal problem could walk down to their corner bar, loudly announce their legal question, and then see who among the regulars looks up from their beer to offer legal advice. And that’s because the legal conclusions of GBX witnesses Sane and Shine, and those of the corner bar regulars, are all of a piece: equally unredeemed by any professional qualification to make them.
Probably not.  Neilan is king of the apposite analogy.  He writes circles around those stodgy, big firm automatons.  Neilan also gets into Invenergy's game of contradicting itself in different venues.  When your company will say anything to get ahead or win an argument, and has its corporate finger in so many legal pies, sometimes it's hard to keep it all straight.  As Judge Judy likes to tell us: "If you tell the truth, then you don't have to have a good memory."  Much better legal advice than Invenergy seems to be getting from its stable of expensive but ineffective legal servants.  Neilan demonstrates how Invenergy's Illinois testimony contradicts statements in its recent Complaint against MISO at FERC.  Different lawyers, different goal, different facts.

No matter what happens here, Neilan wins.  Even if the testimony in question is not struck, the judge knows  Invenergy's promises and legal conclusions are complete and utter hogwash, about as useful as a drunk truck driver's legal theory.
One of the issues in Save Our Illinois Land was whether the the interstate petroleum pipeline
carrier’s leak detection system, which could detect leaks of 1% of flow past a point in one hour, was safe. 2022 IL App (4th) 21008 at ¶¶7, 81-86. The Illinois Appellate Court upheld the Commission’s conclusion that it would not rule on whether a certain percentage leak detection rate was safe because doing so would substitute the Commission’s standard of safety when “...the safety regulation of petroleum pipelines is, as a matter of federal law, within the jurisdiction of the [[federal] Pipeline and Hazardous Materials Safety Administration].” 2022 IL App (4th) 21008 at 5 ¶87.
The same rationale applies to GBX Witness Shine’s implicit legal conclusion that this
Commission can make an enforceable agreement with GBX, a provider of FERC-jurisdictional interstate transmisison service, that GBX will not attempt to allocate the costs of its FERC-jurisdictional interstate transmission facilities without first obtaining this Commission’s approval and consent. As in Save Our Illinois Land, GBX’s offer leads this Commission to grossly transgress its jurisdiction. The legal conclusion on which that offer depends must be stricken from GBX
Witness Shine’s testimony.
Invenergy cannot change federal law to give the ICC jurisdiction over the allocation of costs of interstate transmission.  (And, besides, Invenergy is plenty busy trying to shove some of its costs off onto captive ratepayers in any way it can.)

And so ends this episode of As The Phrase Turns...  In our next episode:  Will Invenergy's lawyer be able to write his way out of a paper bag?
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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