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Pizza, Ponies, and Prostitutes!

5/12/2015

2 Comments

 
Let's get the profitable infrastructure project party started!
A landowner from southeast Iowa today said he has recorded proof a land agent for the proposed Bakken Pipeline offered to get him an 18-year-old prostitute if he’d grant access rights to his property so the pipeline may pass through.

Hughie Tweedy of Montrose said he recorded two of his conversations with the land agent.
“On these recordings you will hear evidence of my senior pipeline representative offering me not once, not twice, but three times the sexual services of a woman,” Tweedy said, “the last time being a $1200 teenage prostitute.”


Hmm... wasn't it less than 2 weeks ago that Bakken Pipeline owner Dakota Access was investigating different accusations against its land acquisition company?
“If anybody knows of anyone who’s been dealt with unfairly,” Boeyink says, “get the names to me and we will deal with it swiftly.”
I'm thinking Boeyink didn't move too "swiftly."  Or maybe he's been a whirling dervish but simply can't keep up with the unsavory activities of his hired land agents.

Whether it's offering ponies and prostitutes to landowners in exchange for easements, or pizza parties and puppy chow to college students in exchange for signatures on petitions of support, buying public support for infrastructure projects is big business! 

And who do you think is first in line for the free cheese?
“If an old junkyard dog like me was offered the sexual services of little girls to get my hackles down, I wonder what was offered to the powerbrokers of this state to gain their support for silence,” Tweedy said. “Shame, shame, shame.”
Can't add anything to that wisdom.
2 Comments

Does PJM Finally Understand Constructability, Cost Caps and Performance Standards?

4/29/2015

0 Comments

 
While up to my elbows in dirt yesterday, I got a little buzz on my phone telling me that PJM had awarded the Artificial Island project to... LS Power.  I laughed -- loud and hard.  If you laugh in the garden, and nobody is around to hear it, did you really laugh?  Or do your neighbors simply think that you've finally gone off the rails?

PJM's Artificial Island project window has been fraught with problems from the get-go.  The RTO initially awarded the project to one of its favored incumbents, but was set upon by other competitors who made a convincing case that the process was not competitive.

PJM hired some wacky "constructability" study to try to prove that its selection was based on the ease with which the project could be constructed.  That was a big waste of money.  The study failed to note the single, most-important reason projects get delayed -- public opposition!  Opposition is directly related to routing and the physical impact of the project, and the way its public relations are handled -- the worse the transmission developer does
at this, the bigger the resultant opposition.  That's a big, big factor in "constructability."

PJM got schooled on what "constructability" really means.

And the project PJM ultimately selected makes an underground crossing of the Delaware River
and avoids protected wildlife refuges.  Lesson learned, PJM?

Here's your "constructability" checklist, for future reference:

1.  Does this project make use of existing infrastructure that could be upgraded or rebuilt to lessen impact of a new right-of-way?
2.   Can this project be buried along existing or new rights-of-way?
3.  Can this project be avoided entirely with non-transmission alternatives?
4.  What alternatives are there to the project that you can share with the public?

If these things are truly considered, you could avoid the worst part of public opposition and win the "constructability" war.

It's also of note that LS Power proposed a cost cap for its project.  LS Power now has a firm budget for its project.  If it exceeds budget, it's going to have to justify why and beg on bended knee to recover its overruns.  A cost cap also acts as a performance standard.  If LS Power doesn't perform to get this project built on time and within budget
, it does so at its own peril.

Let's hope the cost cap is also a lesson well-learned by PJM.  It's what Congress intended when creating financial incentives for transmission
, and cost caps effectively end the "the more we spend, the more we make" attitude so pervasive in the transmission industry today, to the benefit of electric ratepayers.

Progress?

0 Comments

Clean Line Energy Partners is NOT a Regional Transmission Organization

4/27/2015

9 Comments

 
Knock, knock!
Who's there?
Regional Transmission Organization!
Is it PJM?
No.
Is it MISO?
No.
Is it SPP?
No.
Which Regional Transmission Organization is it?
It's merchant transmission wanna-be Clean Line Energy Partners!
Go away, Clean Line, you're not a Regional Transmission Organization!

The U.S. Department of Energy has finally published Clean Line's third "application" to have the DOE "participate" in its Plains & Eastern Clean Line transmission project in preparation for opening a new 45-day public comment period on non-NEPA issues.  The only thing missing on this pile of make-believe is the golden binding.

This supplemental application is Clean Line's third chance to cure defects in its prior two applications, such as the fact that Sec. 1222 requires that an eligible project:
(2) is consistent with--
(A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]), if any, or approved regional reliability organization;
None of Clean Line's projects are included in a RTO/ISO plan.  In fact, Clean Line hasn't even bothered submitting its projects into any regional planning process for consideration.

So, what did Clean Line do when the DOE asked that it prove its project met the statutory requirements under Sec. 1222?  Clean Line pretends to be a Regional Transmission Organization!
2.2 The proposed Project must be consistent with transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act, 16 U.S.C. 791a et seq.) if any, or approved regional
reliability organization

In establishing this criterion, Congress sought to ensure that projects undertaken through Section 1222 are appropriately planned to meet identified transmission needs. The Plains & Eastern Project meets this requirement. On an  interregional basis, numerous planning
initiatives and reports have identified the need for new West-East transmission lines to move
wind power from the central United States to load centers. On a regional basis, SPP and MISO (the two RTOs with which the Project interconnects) have also identified the need for new transmission facilities to accommodate wind generation. Further the Project has been planned and developed in a manner that is consistent with ISO/RTO planning assessments. Namely, in planning and developing the Project, Clean Line performed a series of studies and evaluations that are consistent with how the ISOs and RTOs generally identify needs and solutions for transmission system development. A final measure by which Clean Line meets the statutory requirement is its consistency with reliability standards issued by the approved regional reliability organizations (“RRO”) as envisioned under Section 1222. In light of these multiple areas of consistency, further detailed below, Project meets the criterion for consistency with planning and identified transmission needs.
That's right.  Clean Line says that it planned its project using the same studies that RTOs use to make regional transmission plans, therefore Clean Line's findings that its project meets identified transmission needs are just as good as any RTO determination.

Idiots.
Here's what it takes to be a Regional Transmission Organization:
(j) Required characteristics for a Regional Transmission Organization.
A Regional Transmission Organization must satisfy the following characteristics when it commences operation:
(1) Independence. The Regional Transmission Organization must be independent of any market participant. The Regional Transmission Organization must include, as part of its demonstration of independence, a demonstration that it meets the following:
(i) The Regional Transmission Organization, its employees, and any non-stakeholder directors must not have financial interests in any market participant.
(ii) The Regional Transmission Organization must have a decision making process that is independent of control by any market participant or class of participants.
(iii) The Regional Transmission Organization must have exclusive and independent authority under section 205 of the Federal Power Act (16 U.S.C. 824d), to propose rates, terms and conditions of transmission service provided over the facilities it operates.
Get it, Clean Line?  You can't be a Regional Transmission Organization that identifies transmission needs as long as you have a PECUNIARY interest in a project under consideration.

Clean Line is not a Regional Transmission Organization.

Just one more thing to fight about in federal court?  Any determination by DOE that Clean Line's project(s) qualify under Section 1222 is sort of like one of those Monopoly "Go To Jail" cards.  Go to Federal Court.  Go Directly to Federal Court.  Do Not Pass "Go."  Do not collect... any money at all. 

Do you suppose Clean Line is also going to be on the hook for DOE's legal bills, or is the American Taxpayer going to end up funding this courtroom showdown?
9 Comments

FERC Hearing Concludes

4/23/2015

1 Comment

 
Yesterday marked the official conclusion of the FERC hearing that's taken up so much of my time over the past month or so.

I'm sure numerous celebrations occurred.

Some were more fun
than others
For those who remarked that the second celebration didn't look like much fun, I offer that the beer was picked up off the table, the light turned out, and the room vacated.  Instant fun!

Now, where did I leave my life?  Anyone seen it?

First, I offer this article from WSJ* (I admit it, the world has been revolving even though I paid it little attention).  It's finally been recognized that utilities may be investing in infrastructure as a cash cow.  Ya think?

The way the regulated rate world works is that the more they invest, the more $$ they make.  Although utilities have a built in O&M component in most stated rates, if they don't spend it all, they can use the money for something else, such as increasing shareholder dividends.  And they did.  But, as less power is sold, profits go down and the utility must turn to other profit centers, such as increased capital spending on long-neglected maintenance, or new transmission lines.  And rates go up.

And they wonder why we drink...

*If you can't read the article, google the headline "Utilities' Profit Recipe:  Spend More" and you should be able to access it directly.
1 Comment

The Philanthropy of Flushing Your Money Down the Potty

4/12/2015

9 Comments

 
Philanthropy.  It's a good thing when it supports the public enjoyment of the arts, history, or nature.  But where does the line get drawn between philanthropy and tossing money down the toilet?

Do you suppose that the Clean Line executives sing and dance for their investors?  They ought to, since I believe that's all the investors are going to get in exchange for their philanthropy.

It's been a while since we've gotten a look at who's supplying the money that keeps this rickety boat afloat.  During the ICC RICL hearings in December of 2013, we heard that Clean Line was going to be out of money by mid-2014.

But, here they still are... being a nuisance to Mayberry.  Looks like National Grid had to up the ante and kick in another $15M.  And since a 40% share seems to have increased in value, does this mean that other investors have also flushed some more money down the Clean Line potty?  And what about Bank of America?  Didn't one of Clean Line's spinners say the company was getting cash from Bank of America?

If we can believe Clean Line's Grain Belt Express application to the Illinois Commerce Commission, here's a listing of who's to blame for funding this fiasco:

GridAmerica Holdings (National Grid) has invested $55.7M and currently owns 40% of the company.

ZAM Ventures (Ziff brothers) has invested $73.8M and currently is the majority owner, with a 53% stake.

Michael Zilkha has a piddling $2.8M invested, which gives him a 2% ownership interest.

The remaining 5% (or $6.7M) is owned by "Clean Line Investment" which is some vague investment vehicle owned by "service providers and employees of Clean Line."

Total investment:  Around $140M

That's a lot of green that is simply going to disappear when Clean Line's circus tent folds in the middle of the night and the company slips out of town.  But that's okay, I'm sure these savvy investors wouldn't invest money they couldn't afford to lose.


$140M invested and the company still doesn't have even one of its projects fully permitted and ready to build.

In addition, all the interest in the project is coming from non-existent generators.  It really doesn't matter how much Clean Line talks about how much its project is needed by other states in the east, without any contracts, Clean Line will fail.

Dance, Clean Line, dance!!!

9 Comments

Can Colorado Utility Consumers Afford to be Unrepresented?

4/7/2015

2 Comments

 
Disturbing news out of Colorado this morning.  The Denver Post reports that the legislature is playing games with funding of the Colorado Office of Consumer Counsel (OCC) for the next 10 years.  Without funding and authorization, the OCC will simply cease to exist under Colorado's "sunset" law.

A concerned legislator likened the refusal to deal with the re-funding of the OCC to "Washington, D.C.-style politics."
"If people disagree on the policy, the substance or the process, that's fair; that's what we're each here to do," Garcia said. "But what we're seeing here is Washington, D.C.-style politics where you put something off to the side, and the committee chair doesn't give it due regard until it's too late."
Why is consumer counsel so important?  Because it is the utility consumer's only defense against high rates and utility policy that compromises their interest.  Only the consumer counsel is looking out for residential and small business interests during utility rate cases.  Without the OCC, residential consumers would have no choice but to represent themselves in every utility case before the Colorado Public Utilities Commission.  Who can afford the time or expense of that?  Nobody, therefore consumers would be unrepresented.  It's just not true that outside consumer groups, contingency-based lawyers, or class-action lawsuits can take the place of an independent, governmental advocate that defends the interests of all residential and small business consumers.

According to a report prepared last fall, the OCC regularly saves this class of consumers between $40-50 million per year in increased rates.  The cost of this representation is a mere $1.5M/year.  The funding for the OCC comes from fees paid by regulated utilities, not out of the state's general fund.  It costs consumers nothing, and it consistently saves them money.  The report recommends continuing the OCC until 2026.  However, the legislature is ignoring it, and without their nod, the OCC will sunset.

Don't let the Colorado legislature rob you of the representation that keeps your utility bill in check.  Without the OCC, out-of-control rate increases could have you lamenting that "someone" should do something about that.  The OCC is the consumer's "someone," even though most consumers don't even know they exist.  Get educated and take an active role in the processes that control your utility costs -- support the re-funding of the Colorado Office of Consumer Counsel. 

Halt The Power Lines makes it quick and easy to do your part!  Visit them here to find out how to take action!
2 Comments

Grain Belt Express:  Sellers, But No Buyers

4/6/2015

1 Comment

 
If I didn't know any better, I'd think that Clean Line's Grain Belt Express Project was trying to unload a whole bunch of 90s beanie babies.  Once upon a time, beanie babies were so popular, it was a seller's market.  Now, you can't give the critters away.

Same deal with GBE.

Big announcement that the results of GBE's open season attracted requests for service totaling more than 4 times available capacity.  Beanie babies for sale!!!

However, GBE's open season didn't attract any buyers for the power in Missouri.  Poor, homeless, unwanted beanie babies!!!

And why would that be?  Because, according to the staff of the Missouri Public Service Commission, none of the utilities in Missouri need to purchase wind power to meet their renewable portfolio standard goals.
"Grain Belt Express has not shown its project is the most cost-effective means of compliance with renewable energy standards in Missouri, as all but one of Missouri's investor owned utilities has already disclosed that it has existing capacity and new contracts that will meet or exceed the 15% renewable portfolio standard target by 2021."

GBE's mouthpiece tried to pretend Missouri was always the intended terminus of his project.
Ten respondents submitted requests for service to deliver some 3,000 MW of power to Missouri, more than six times the available capacity at that delivery station, Lawler said.
“We have 500 MW going to Missouri, which is enough to power 500,000 Missouri homes,” he said. “The rest of it will go farther east, to Illinois and Indiana.”
“Originally we had it all going to Missouri, but the grid there is not robust enough to take full delivery, so we had to bust it up and make an additional delivery point.”
Something got busted up here, and I think it's Clean Line's propensity to make crap up.  The Missouri converter station didn't exist until Clean Line came to the realization that there was NO WAY they could get their project approved in Missouri as long as it was intended as a fly over state to lucrative eastern energy markets.  But, despite Clean Line's offer of beanie baby consolation prizes for Missouri, they're still in serious trouble.
“In Missouri, we’re at the very tail-end of the regulatory process,” Lawler said. “We expect an order from the (Missouri Public Service Commission) in the next couple of months. There is no regulatory time frame (for approval) like there is in Kansas. We expect a decision in the first half of this year.”
Sure, everyone expects an order from the MO PSC, but there's no guarantee that it will be a favorable decision.  How much longer is Clean Line going to pretend everything is hunky dory while the SS Clean Line is rapidly taking on water?  That's awfully brave of them, don't you think?

And what about the rest of the power that's intended to be delivered into PJM's eastern grid... any interest from buyers there?  Nope.  The eastern U.S. doesn't need any beanie babies, either.

So, just like its open season on its Plains & Eastern project, Clean Line is holding a bag full of beanie babies that nobody wants.  None of these generators have been built yet, and won't be built until they have buyers for their product.  Who is going to contract with an unbuilt generator to maybe supply power via an unbuilt transmission line that can't get state approvals?  Utilities hate risk (and beanie babies).

Take a memo, Clean Line:  There's no interest in your product.  The utility industry has been trying to tell you this since your inception.  You just can't overcome the chicken/egg scenario that makes utilities shy away from resource uncertainty.  Yes, I understand Mikey thought they were wrong when he decided to market beanie babies way back in 2009.  But time has been unkind to his beanie baby market.  The sooner he admits it and stops this farce, the better off we'll all be!
1 Comment

Cut the Rhetoric and Get on With Progress!

3/8/2015

0 Comments

 
Lots of big, interesting Sunday news stories this week!

First, the front page Washington Post story about utilities' campaign against rooftop solar.  This issue has been swirling about since 2012.  In June of that year, several consumer groups got together to file comments on FERC's transmission incentives docket in reply to Edison Electric Institute's holier-than-thou bullying to get its own way to continue, and even increase, incentive (subsidies) for new transmission builds.
Because transmission is such a long-term asset, we must be extremely mindful of
how new projects relate to each other to achieve comprehensive energy policy goals. If we continue to approach transmission as a hodgepodge, knee-jerk reaction to serve short-term goals and provide sustainable revenue streams to investor-owned utilities, we risk setting ourselves up for a possible future where a huge investment in  transmission becomes the financial responsibility of a shrinking pool of ratepayers. Technological advances and affordability are making it possible for an increasing number of consumers to produce their own power and feed it into the local distribution grid by making their own smart, fuel-free, power producing investments. Energy efficiency and demand management gains continue to shatter future demand projections, further decreasing the need for billions of dollars of investment in new transmission infrastructure.
Nothing like a wake-up slap across the face, eh, EEI?

In September of 2012, EEI held a pow-wow to talk about how they were going to manage this strange, new world where their control of the electricity-consuming public was going to erode with alarming alacrity.  Instead of approaching the problem honestly, EEI preferred to use its power, money and influence to try to find ways to kill distributed generation, instead of getting on the wagon and finding a way to turn it into a profitable business model.

In early 2013, EEI produced a white paper addressing what it termed "disruptive challenges" heralding doom and gloom for their stable of investor owned utilities.


And the battle lines were drawn.

Solar advocates have created their own issues, with polarized insistence that their use of the distribution system to sell their excess back to the utilities should be free, and that they provide so many benefits to the system that they should actually be paid more for avoided costs.

Because utilities are so bloated and focused on building more infrastructure from which they derive their profits, a shrinking pool of ratepayers increases the costs to the ones who don't install solar.  Utilities crying about the burden placed on "the poor" is
ludicrous and hard to stomach.

There has been no middle ground, and messaging on both sides is pretty ridiculous.  Too much rhetoric causes increased polarization that stymies progress and the eventual realization of our energy future.  Can't we get it together here, and effect a reasonable compromise?

Otherwise, the utilities can continue their self-destructive initiative to have it all, while solar advocates can disconnect from the public utility grid and build their own system to share their excess.  Seems kinda silly, doesn't it?  Where's King Solomon when you need him?
0 Comments

Don't Waste Your Money on FirstEnergy Add Ons

3/2/2015

40 Comments

 
Have you been getting random mailers from "Potomac Edison," "Mon Power," or another FirstEnergy distribution affiliate trying to sell you an "Exterior Electrical Line Protection Plan from HomeServe?"

Just say no.

Go outside and look at your electric meter.  You are responsible for some components of your electric service connection.  The utility is responsible for the meter components and any underground service lines.  You are responsible for maintaining the rest.  Is your service drop overhead, or underground?  Read the fine print:
The meter that measures the amount of electricity used, any underground service entrance conductor, and the meter base (materials only) are not covered under this plan, but are covered by your local FirstEnergy Company.  Your local FirstEnergy Company will supply the materials to repair or replace the meter base...
So, what is covered?  An overhead connection to your house (cost estimated at $200) and the labor to replace the company-supplied meter base (estimated to cost another $200), if they ever need to be replaced!  So, how much will FirstEnergy's insurance cost you?  $5.49/month.  Forever.  You'd be better off putting that $5.49 in a mason jar every month, on the off chance that you ever do need these unusual electrical repairs, so that you can hire a local electrician to fix them.  FirstEnergy's literature claims that your homeowner's insurance won't cover these repairs.  Know why?  Because the cost of repairs is usually lower than your deductible!

Why would you want to give a bunch of money to the utility for "insurance" against an unusual problem that only costs a couple hundred bucks to fix?  It doesn't say "stupid" on my forehead.  Oh, but wait!  If you sign up you will receive a "special" phone number to call to get your service.  If you remember what you did with that phone number and the rest of your paperwork when you have an outdoor electrical line issue, then you could avoid the hassles of looking for an electrician in the yellow pages and "waiting" for service (because service dispatched through Akron, Ohio, is much quicker than calling an electrician in your own town).

Sounds like a scam to me!

So, I've been a Potomac Edison (or Allegheny Power, when that name suited them) customer for nearly 30 years.  How come I'm just now being bombarded with these junk mailers?  Because the West Virginia PSC recently sold me out to the company, going against the advice of its own Staff, the Consumer Advocate Division, and the findings of one of its own Administrative Law Judges.

Say what?  Take a look at WV PSC Case No. 13-0021-E-PC (look up "Case Information" here).  Two years ago, FirstEnergy asked the PSC for permission for its two West Virginia distribution companies (Potomac Edison and Mon Power) to market these useless "services" and products to their customers and to add the cost of any purchases to the customer's electric bill.

The Staff of the PSC and the Consumer Advocate objected to FirstEnergy's plan, which, in addition to the "Exterior Electrical Line Protection Plan," will soon be offering you:

1.  O
ther Home Solutions maintenance and repair plans (i.e. insurance) for other appliances you own, your natural gas service lines and even your plumbing. 

2.  Surge suppression service (which they already separately offer as part of their regulated service activity in West Virginia).

3.  Customer Electrical Services Program that allows your electric company to "arrange" electrical service work to be performed in your home.  You still pay for all the work they do, your monthly fee just alleviates your "hassle" of finding your own electrician and negotiating a reasonable fee for service with him.

4.  Online store - where you can buy all sorts of useless crap and energy-wasting space heaters, and pay for it all on your monthly electric bill.

A hearing was held, and the PSC's Administrative Law Judge recommended that the Commission prohibit this kind of promotion.  However, FirstEnergy didn't like that decision, so they filed exceptions to the Judge's Order and the Commission disregarded it and made a new finding that FirstEnergy could continue to promote these useless "services."


Remember, none of these services are regulated, so if you have an issue with service or billing of these add-ons, the PSC can't help you.  You're on your own to solve the problem with the company (and it's not even the utility you'll be fighting with, but some third-party "insurance company") or through the court system.

So, how much money does FirstEnergy make off these products?  Is the company really that desperate that it needs to peddle space heaters and worthless "insurance" to its customers?  It's not about the few pennies in kickbacks FirstEnergy receives from these third-party companies for selling you a "service," it's about the half a million bucks FirstEnergy was paid by one of these third-party companies for "licensing rights and utility bill access fees" to access Potomac Edison's or Mon Power's customer records and to have your utility bill you for their services.  FirstEnergy is essentially selling an asset -- its customer base and monthly billing system -- to a private company that hopes to make money selling things to the customer base.  There is a commercial value to a customer base of 500,000 customers.  When the customer base is acquired through a regulated monopoly, should the utility be able to sell it for private profit?  Your WV Public Service Commission says they can.

Tell your legislators to ask the PSC why they have allowed Potomac Edison and Mon Power to sell you out like that.  And think twice about jacking up your monthly electric bills with "insurance" you'll probably never need and overpriced lightbulbs from FirstEnergy's online store.

And want to have some fun right now?  All those junk mailers they're sending you have postage paid return envelopes to "Plan Administrator."  The envelope instructs:  "Include only your form and nothing else."  If you don't sign up for the plan, you won't need a "form," so go ahead and stuff them with "nothing else" or whatever you want and return them.  See how much scrap paper you can fit into the envelope!  Or perhaps your child would like to draw a picture for "Plan Administrator?"  Go ahead, have some fun!

And then, get serious.  The fine print instructs:
If you would prefer not to receive these solicitation from HomeServe, please call 1-888-866-2127.
Tell them you don't want to receive any more offers for their services from Potomac Edison or Mon Power and see what happens.  Of course, this won't stop the other offers from the other vendors mentioned above, but it's a start.  I'd like to know who's really controlling the mailing list here -- is it FirstEnergy or is it HomeServe?  Let me know what you are told in the comments section of this blog post...
40 Comments

PJM's Energy Markets are Special!

2/19/2015

1 Comment

 
The insiders got together to talk about the outsiders last weekend.  I'm sure my invitation got lost in the mail, along with yours, dear reader.  Or maybe... gasp... we're outsiders?

At any rate, the insiders had a nice long discussion about energy markets and slipshod enforcement tactics.  I know Barney has been telling the kiddies that they're "special" for many years now, but he wasn't singing about energy markets.
Energy markets aren't special.

They're just another product of the PJM cartel's enabling  of its members profits.

Bowring said the process that RTOs use to create market rules is flawed because market players get to vote on those rules, and sometimes they block the passage of needed reforms because they are engaging in the behavior that a new rule would prohibit.
It's like attending goody-two-shoes-kindergarten if you want to participate in PJM's energy markets, and you're going to have to tattle on yourself if you make too much money:
Bowring said market participants also have a duty to inform market overseers of faulty rules and false arbitrage opportunities and to not engage in such behavior once they suspect it to be wrong. He said the "vast majority" of market players do just that, and that those who think "they're the smartest guys in the room" by figuring out how to exploit some rule loophole are usually not since others have also seen that opportunity but chose to do the right thing by not engaging in such behavior.
When is FERC going to "do the right thing" and get rid of its mysterious and dysfunctional energy markets?

They need to realize that they need outsiders to make their silly markets work.  If outsiders aren’t allowed to make money playing by the market rules without suffering the occasional random sacrifice from their ranks to serve as an example of a "bad egg" and a demonstration of FERC's power, then perhaps they should just outlaw their participation altogether.  Will the beatings continue until morale improves?

It’s like slopping a whole bunch of chum into the water and complaining when sharks show up instead of some pretty goldfish.
1 Comment
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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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