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AYE/FE Merger Public Hearing

12/1/2010

6 Comments

 
A couple of us attended the Maryland Public Service Commission's public hearing on the matter of the merger of Allegheny Energy and First Energy in Frederick, Maryland, last night.

All five PSC Commissioners showed up!  Imagine that!  Unfortunately the sparse crowd was probably about equal in number of citizens vs. power company drones.  The first speaker gave me that ol' deja vu shilly feeling when he very briefly said he supported the merger because it would mean more jobs, and probably reduced rates, but he really didn't know about any of that.  Umm, yeah, kid, I think you're right about that last part.  The merger only guarantees jobs for 2 years... then you're all in the old unemployment line, and that reduced rates thing is a fantasy.  You obviously didn't read the filing at all -- you just did what you were told.

Next speaker was Nick Carrera, from one of the Maryland opposition groups, but I believe he was speaking personally last night.  He used a map to point out how the new lines feeding out of PATH's proposed Mt. Airy substation are heading into First Energy territory.  Coincidence?  Nick didn't make it seem that way.  Great job, Nick!!

I spoke briefly about how West Virginians were shut out of the merger in our state and because our Consumer Advocate cut a deal, there were no public hearings to attend in my own state.  And speaking of that deal, Maryland should be leery of one of the "perks" we got in West Virginia, where the companies agree not to charge merger costs to ratepayers.  Why?  Because Allegheny's accounting is less than honest.  I also shared the mention of the merger in Morningstar that was featured on The Power Line.  In the article, Allegheny management confides that First Energy isn't interested in their transmission business and will probably sell it off.  Last topic was First Energy's fault in the 2003 blackout.  "It wasn’t until the lights went out in the First Energy control room that the First Energy personnel had a solid indication that the problem was indeed in their service territory (and not somewhere else)."

A couple of representatives from the Sierra Club spoke about the issues surrounding all the dirty energy produced by the companies, and unfortunately I missed most of it because I got notified that the interior light was on in my car back in Charles Town and the good samaritan trying to save me from a dead battery couldn't figure out how to turn it off.  At least that didn't happen while I was still at the podium :-)

A gentleman complained about outrageous reconnection fees after a late payment.  He was "taken care of" by Allegheny drones at the meeting.  And what have the rest of us gotten by complaining about Allegheny?  Oh, that's right, we get a power line in our backyards.  Sweet!

Some Frederick City guy and a Frederick Chamber of Commerce guy came to the podium and brown nosed the companies in a shameless fashion in the hopes that the promised "regional headquarters" would be located in Frederick.  That depends, fellas, how do you feel about a gigantic substation?  What a revolting display!  And that brings us to...

One more last note about my buddy Todd Meyers... who rolled his eyes and made faces while I was speaking.  Is that what they taught you at PR flack school?  You know, Todd, nobody could see what you were doing EXCEPT THE PSC COMMISSIONERS and a friend of mine who turned around and looked at you while I was speaking.  I see there's absolutely no danger that Todd may be getting any smarter over time.

Frederick News Post's article about the hearing, where Ed Waters managed to misquote me in just one sentence.  I talked about Allegheny's financials, not First Energy's.
6 Comments
JustMe
12/2/2010 07:03:25 am

What never ceases to amaze me is the confusion that stirs in the hearts and brains of so-called conservatives. Speaking as a dyed in the wool middle-of the-roader, why is every corporation right? Why is every opponent of a corporation a tree-hugger? Why do state's rights disapear when there is corporate profit at stake? Aren't there some corporations that "sunset" and some that are born because old ideas become obsolete? Don't some citizens oppose corrupt corporations because there must be some sense of transparency and justice for new capitalism and advanced ideas and technology to thrive? Don't Constitutionalists believe that people can get it right when lobbyists' funds get it wrong? Where the H*** are THEY on this one????

And just another concern. The bigger these regional entities get, the dumber and more easily manipulated they get. Their brains only work one fiscal quarter at a time. AEP and utilities are crying about a lack of technically trained professionals. Meanwhile, back at the national debt ranch, Duke Energy (quietly slipping in under the PJM umbrella) is inviting China to take part in this wonderful "new" national grid system that the United States so desperately needs to move into the future. http://money.cnn.com/video/fortune/2009/12/01/bizgreen.duke.rogers.china.energy.cnnmoney/ So while we're at it (says Duke), Lets let AEP and their buddies buy transformers and equipment from China, create partnerships with the Chinese, AND build the pulse of the east coast grid all around the United States Capitol and the Chesapeake Bay.

The FirstEnergy merger with Allegheny is another step toward giving old utility cartels (yes people who read this blog understand "cartel" and "oligopoly")loads of new power which is just setting them up to be indebted to the Chinese while the fake flag wavers like Mike Morris retire to the graveyard and leave us stuck cleaning up their greedy mess. How dare he associate his current activities with his long abandoned "service" to our nation?

Ok, I have said my piece. Now I can go to sleep.

Reply
PowerMAD
12/2/2010 08:05:31 pm

What a GREAT rant!!

You should turn it into a Letter to the Editor and send it to the Journal, News-Post, Herald-Mail, Winchester Star, NV Daily, Leesburg Today ... who have I overlooked?

Reply
Geek
12/5/2010 07:04:12 am

For any who want to learn more about what one of the federal governments "neutral" watchdogs. These problems remain with oversight of utility mergers. http://www.gao.gov/products/GAO-08-752T
(sorry - not too exciting, but relevant)

Reply
Keryn
12/5/2010 08:22:36 am

And that showcases a major problem -- nobody is auditing these utility companies -- and they're robbing the ratepayers blind.

Self-reporting only works for those who are honest.

Reply
JustMe
12/11/2010 10:31:25 am

Here is where to look further. What is FirstEnergy promising? Here is what is going on in PA (Penelec, Penn Power and Duquesne) Chamber of Commerce members get a discount. Is this happening in MD, WV and VA? Don't know about energy rates, but if this is way below market, isn't that a bit anti-competitive? Just sayin' that while consumers struggle at the 9 cents range, Chamber of Commerce members voicing support for the merger get this kind of 6 cents deal until 2012!!!! More imprudent give aways hurting individual consumers. When does this BS end? Obviously reporters have no juevos. Where are the attorneys general in the states asked to approve these mergers???
http://www.electricenergyonline.com/?page=show_news&id=145165

Reply
JustMe
12/11/2010 10:35:19 am

Correction: 2013. Here are some questions for our PATH accounting eagle eyes: Are imprudent discounts that are outside the boundaries of reasonable market rates the same as imprudent expenditures? Isn't that a giveaway? Is this kind of giveaway taxable to the recipient?

Reply



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    About the Author

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

    About
    StopPATH Blog

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

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


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