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Cherokee Nation Resolves to Oppose Clean Line

1/17/2015

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Despite Clean Line's song and dance about how it has consulted with all stakeholders about its projects, it somehow  missed the Cherokee Nation.

Last week, The Cherokee Nation passed a Resolution “opposing the establishment of an energy line route by the Plains & Eastern Clean Line in Sequoyah County, Oklahoma located within the Cherokee Nation jurisdictional area.”
A RESOLUTION OPPOSING THE  ESTABLISHMENT OF AN ENERGY LINE ROUTE BY THE PLAINS AND EASTERN CLEAN LINE IN SEQUOYAH COUNTY, OKLAHOMA LOCATED WITHIN THE CHEROKEE NATION JURISDICTIONAL AREA

WHEREAS, the Cherokee Nation since time immemorial has exercised the sovereign rights of self-government in behalf of the Cherokee people; and,
 
WHEREAS, the Cherokee Nation is a federally recognized Indian Nation with a historic and continual government to government relationship with the United States of America; and,
 
WHEREAS, The Plains and Eastern Clean Line organization is proposing an energy line route to go through Sequoyah County and Sequoyah County land owners do not want it.  The towers will be at least 200 feet high and it appears that this energy line will be going across the Stokes Smith Ceremonial Grounds and also along the pathway where the Trail of Tears crossed in Sequoyah County where some historical markers are located; and,
 
WHEREAS, although the Cherokee Nation does support positive environmental activities, this activity does not appear positive, landowners do not want this and it could impact Cherokee Historical Areas and Ceremonial Grounds; and, the Council of the Cherokee Nation opposes the establishment of this energy line; and, therefore,
 
BE IT RESOLVED BY THE CHEROKEE NATION, that the Council of the Cherokee Nation, on behalf of its citizens and residents in the Sequoyah County area and due to concerns of the impact on the Tribal Historical and Ceremonial Grounds, hereby opposes the establishment of this energy line by Plains and Eastern Clean Line in Sequoyah County which is within the jurisdictional area of the Cherokee Nation.
Doesn't sound like the work of a Nation that's been working hand in glove with Clean Line and the DOE, does it?  In fact, it sort of seems like the reaction of a Nation that has been blindsided by a project they knew nothing about.

Janelle Fulbright, deputy speaker of the of the Cherokee Nation Tribal Council, who sponsored the resolution said:
“There is no benefit to us in any way,” Fullbright said of the transmission line. “We’re just seen as the pass through for a monstrosity that will lower our property value. Even if the proposed routes didn’t go right along the Trail of Tears and through our ceremonial ground, I’d be against it because we like to live in the country and not see anything out our back door.”
Three Arkansas County Quorum Courts (the local county government system) have also passed Resolutions opposing Clean Line.  More to come.
0 Comments

Centralized Wind's Race to the Gold

1/17/2015

5 Comments

 
Will the U.S. ever get an offshore wind industry started?  One step forward, two steps back.  Just when Cape Wind might finally lay oar to the water, the utilities that signed power purchase agreements to purchase it have canceled their contracts, saying that Cape Wind failed to meet its obligations under the contract.  Cape Wind says the contracts are still valid, citing force majeure.  The companies are further squawking because they were "forced" to sign the power purchase agreements to get the state of Massachusetts to approve their merger. 

The article forgot to mention that the company has made a $40M investment in hundreds of miles of transmission lines for onshore wind since the power purchase agreement was signed in 2010.  Did National Grid cancel its contract with Cape Wind in order to stifle competition to its investment in Midwest wind?

Offshore wind continues to struggle, while Midwest wind is trying to court the U.S. Department of Energy to invoke an as yet untested section of the Energy Policy Act to "participate" in the Clean Line projects in order to usurp state authority to site and permit them, and use federal eminent domain to take land Clean Line was denied by the states.  Clean Line's projects have not been reviewed or approved in any regional transmission planning process under FERC's Order No. 1000's competitive transmission scheme.  The proposed action of the DOE would not only put the federal government in the business of transmission planning, it would also actively interfere with electric markets, two areas where the DOE does not have jurisdiction or expertise. 

Why is Midwest wind a bad idea?  Because it's located too far away and building overland transmission simply to ship electricity to the east coast is expensive, time consuming, and unfair to landowners crossed, who will receive none of the benefits, but all of the burden.

Why is offshore wind a good idea? 
Responsibly developed offshore wind power offers a golden opportunity to meet our coastal energy needs with a clean, local resource that will spur investments in local economies - creating unparalleled job growth and avoiding the need to export hard-earned energy dollars outside the region.
Or so says a mid-2014 report from the environmental community, Catching the Wind.  But yet, some of the same groups who touted the benefits of offshore wind in this report were simultaneously intervening in Midwestern wind transmission line cases and telling state utility commissions that there's a "need" for Midwestern wind on the East coast.  So, which is it?

Or is the Sierra Club just a bunch of hypocrites?  I'm leaning toward that hypothesis, since the Sierra Club is all over the map on the issue of eminent domain for energy projects, as pointed out by an Arkansas landowner.
The eminent domain issue has become a key point of contention between Pilgrim and the Sierra Club. An attorney for the Sierra Club has said that Pilgrim has no rights of eminent domain because it is a private company and not formally designated as a utility by the Board of Public Utilities.
But yet, the Sierra Club thinks that Clean Line, a private company not formally designated as a public utility in Arkansas, should use eminent domain as "the middle ground" to take the rights of way it finds necessary through the state.
On the other side are landowners who see the power lines marching across their land as more big government intrusion into their lifestyles and even interfering with their livelihoods.

Additional arguments against construction of the lines are possible health effects, and the fact that the entities proposing the construction are private companies.

It seems strange an argument against private industry would be made. The United States to a very large degree operates that way. It’s capitalism, right?

Rights of way must be secured for these power line projects private or otherwise, just as any project in the public interest such as a toll road or a railway. Fair market price must be paid for any property taken for rights of way.
I think the Sierra Club is an opportunist, using whatever arguments it thinks will delay or alter energy plans it does not like (those involving fossil fuels).  Sierra Club has no qualms about using landowners as pawns to further its environmental agenda and has shown it will jump on board even the worst energy projects, if they are only cloaked in "clean" labels.  Sierra Club needs to develop a rational and coherent energy policy and stick with it because people are abandoning the club in droves.  Maybe Sierra Club thinks that's okay, since it can more than make up for the members it loses with more grant money from big, mysterious, "environmental" funds.  However, true grassroots integrity shall remain elusive.
Let's get on with the offshore wind, shall we?  If the East coast wants "clean" power, they need to make it in their own backyard.  Once they get over the initial direct cost shock (as opposed to the hidden incremental cost increase of building new transmission lines across the country -- they're not going to avoid the costs), they may realize that being clean and green and responsible for their own environmental footprint provides other social and economic benefits as well.
5 Comments

Faster, FirstEnergy, Faster!

1/16/2015

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Isn't that amazing?  FirstEnergy has learned to work faster for shale clients.  Remember that next time you want some service... pretend you're a shale gas company.

And here's another amazing fact:
Their promise and rapid pace of development happen to coincide with the Akron-based electricity company’s recent focus on making its transmission segment the lead revenue growth generator for FirstEnergy, where Mr. Bridenbaugh serves as vice president of transmission.
Serendipity, right?

So, who pays to supply electricity to new shale gas companies?  You do.
Most of the time, when the company upgrades a transmission line or builds a substation to service a new gas processing plant, the investment is recovered from the utilities that benefit from the upgrade.
Utilities.  Got that?  Not shale gas companies.

How much will you pay?
...the company has said it wants to retrench in its utility and transmission businesses, both of which provide a guaranteed rate of return. For transmission projects, the return is often in the double digits.
Lots.

Why are you paying?  Because the new shale gas companies make the existing grid unreliable, and you need reliability!  (which came first?  the chicken or the egg?)
Because the new, shale-related loads are springing up in rural areas with older or nonexistent infrastructure, the new pull on the lines often presents a reliability risk for other customers drawing electricity in the area. Therefore, many such projects end up going before PJM Interconnection, a Valley Forge-based organization that manages the nation’s largest grid, servicing 13 states in the northeast including Pennsylvania.

PJM has a formula to determine who’s responsible for the cost of upgrades.

Typically, for projects like those on FirstEnergy’s shale plate, it’s shared between the direct beneficiary — a compressor station or processing plant — and the regional utilities whose customers also see a benefit from improved service and reliability.
Hmm... I wonder if regional utilities want to pay half my electric bill this month?  Because, you know, I could jump up from my chair and turn on every electric appliance and light in the house right now.  And that might hurt regional reliability... right?
0 Comments

Is There Any Point to PJM Market "Rules"?

1/9/2015

17 Comments

 
As if PJM's electric market rules aren't already complicated enough, now PJM is insisting that RPM participants follow rules that aren't even rules yet.

Well, yeah, we all know that PJM answers to no one.  No, really, a certain PJM employee actually told a reporter once, "PJM answers to no one," when he was trying to sell the PATH project to West Virginia citizens. 

And PJM's market monitor told a newspaper once, "following the rules does not mean you are not manipulating the market."

So, it appears that PJM gets to make up its own rules, often before or after the fact, and nobody can protect you, because PJM is omnipotent and all.  Following the tariff doesn't appear to offer any protection against being accused of manipulation.  And, now it seems that PJM members have obligations to abide by proposed rules that aren't even in the tariff...

Recently, PJM filed changes to the capacity market portion of its tariff which, if approved, will establish a deadline for data submittal.  The new deadline will occur in early January each year.  In its filing, PJM has asked FERC to approve the tariff revisions by April 1st. 

But, PJM and Monitoring Analytics seem to think the proposed portion of the tariff is already in effect and are requiring capacity suppliers to submit certain data now.  FERC has yet to approve these new rules!  But, what could happen if the new data is not submitted by the proposed deadline in January, even though the tariff revisions are proposed to be effective in April and are NOT YET IN EFFECT?  Could the market participant be referred to FERC under a tariff violation claim?

So, not only is it possible to be guilty of something without actually violating PJM's rules, it is now also unacceptable to violate new rules that are not yet in effect! 

I think the bloated bureaucracy that is PJM needs to be slimmed down and cleaned up, because free M&Ms only have so much charm.

17 Comments

For Sale:  Environmental Liability

1/7/2015

2 Comments

 
The Columbus Dispatch reports today that AEP has hired Goldman-Sachs to explore the potential sale of its unregulated coal-fired merchant generation fleet.

Coal-fired power plants are no longer profitable.  AEP and FirstEnergy have been unloading these liabilities on the backs of ratepayers in regulated states, and even have cases pending to unload them in unregulated states. 

The power plants are no longer profitable because the price of power has fallen below the cost to operate them, and these plants need a bunch of expensive retrofits to comply with new EPA regulations.  AEP and FirstEnergy are in a bind because they placed all their eggs in the same basket by hanging onto coal plants way past the time when smart utilities unloaded them at fire-sale prices.  Corporate greed strikes again!

The WV PSC just recently approved an AEP subsidiary's purchase of all but 140MW of one of the company's merchant plants, making Wheeling Power and Appalachian Power customers responsible for operating it and absorbing any losses.


In 2013, the WV PSC approved FirstEnergy's plan to dispose of its Harrison Power Station the same way, by making customers of Mon Power and Potomac Edison responsible for it.

The WV PSC never met a coal-fired power plant or rate increase that it didn't like.

Encouraged by the WV PSC, the Ohio companies next decided to try to unload more of their coal-fired assets on ratepayers in Ohio.  Except... Ohio is a deregulated generation state.  Demonstrating extreme creativity, the tedious twins came up with ingenious plans to shift responsibility for the plants to ratepayers anyhow.  FirstEnergy came up with its "Powering Our Profits" plan.  I don't know if AEP came up with a cutsie-poo name like FirstEnergy, but it also put forth a proposal to transfer responsibility for its
plants to Ohio ratepayers.

Gotta wonder how those cases are going to turn out at the PUCO, considering:


AEP has proposals pending with Ohio regulators that would provide a profit guarantee for five plants, four of which are part of the unregulated fleet. The company has said the plans would allow it to continue operating the plants, as opposed to a potential sale or shutdown.
But now it looks like AEP is getting ready to sell them instead.  Smart move.  Finally.

FirstEnergy is still too dumb to buy a clue.
2 Comments

The Forked Tongue of FirstEnergy

1/2/2015

2 Comments

 
I noticed something funny the other day.  It seems that FirstEnergy is having trouble telling the same story about its transmission building endeavors to different audiences.

Just like new transmission lines proposed to criss-cross the midwest to allow "wind" to interconnect with the existing transmission system are nothing more than gigantic generator lead lines, FirstEnergy's "Energizing the Future" campaign to build new substations and transmission in West Virginia are nothing more than gigantic service lines to new Marcellus shale processing plants.

Generator lead lines (the transmission necessary to connect a generator to the existing transmission system) are paid for by the generator.  It's part of their cost of selling power, just like the rest of their plant.

So, why are service lines for new customers the responsibility of all customers?  If I wanted to open a plastics factory in my backyard and asked Potomac Edison for service, I bet they'd charge me plenty...  like the entire cost of the service line connected to whatever voltage I required for my plant, or the cost to upgrade existing lines to serve my plant.

The State Journal reports that FirstEnergy is building new transmission and substations in West Virginia to support the Marcellus shale industry.
Projects include the new Waldo Run transmission substation and a short 138-kilovolt transmission line in Doddridge County near Sherwood. The $52 million project is expected to support industrial users and enhance electric service to more than 6,000 customers in Doddridge, Harrison and Ritchie counties. The substation will accommodate additional load growth at a new natural gas processing facility, which consumes large amounts of electricity separating natural gas into dry and liquid components.

FirstEnergy is also working on a 138-kilovolt transmission line that will support the natural gas industry, as well as enhance service reliability for nearly 13,000 customers in the Clarksburg and Salem areas. The 18-mile, $55 million Oak Mound-Waldo Run transmission project is expected to be placed into service by December 2015.

The company is also evaluating additional transmission upgrades as new service requests from shale gas developers continue throughout the Mon Power territory. FirstEnergy is currently evaluating new transmission facilities in Wetzel County to support a midstream gas processing plant that continues to expand.
Would the existing 19,000 customers need their electric service "enhanced" if not for the addition of the Marcellus facilities?  Probably not.

So, what is FirstEnergy telling the landowners affected by their new, Marcellus-supporting projects?
Project Need
FirstEnergy has identified the reliability risk of low voltage conditions on the transmission system under certain conditions. The proposed project addresses the reliability issues. Its assessment is based on existing conditions and the need for system reliability to safely meet the electrical needs of the region now and into the future.
Nothing about shale gas development or new Marcellus facilities there.  Just mysterious "low voltage conditions on the transmission system under certain conditions."  Wanna bet those "certain conditions" are the construction of Marcellus facilities?

It seems that FirstEnergy has two stories here.  The one for its investors is all about building things to support Marcellus.  The one for ratepayers is about building things to support existing customers.  Obviously, one of these stories isn't exactly honest.

Why isn't the Marcellus industry paying the cost of new electric facilities to support its business? 

Why are West Virginia electric consumers, who have been subject to more and more rate increases recently, being asked to pay the cost of harvesting Marcellus gas?  Isn't the gas industry in West Virginia profitable enough without subsidies provided by ratepayers?

And if that isn't bad enough, FirstEnergy's transmission scheme is all about pumping more and more "transmission spend" into its transmission subsidiaries, like TrAILCO, that earn a sweet 12.7% return on equity courtesy of federal transmission rates.  In addition, these lower voltage transmission lines are beyond the jurisdiction of state regulators.  As noted on FirstEnergy's "fact sheet:"
Regulatory Approval
TrAILCo will submit a letter to the staff of the Public Service Commission of West Virginia advising them of the project.
Just a letter.  No debate.  FirstEnergy is a utility with eminent domain authority in West Virginia so they're just going to write a letter to the PSC, and come take your property.  They don't even need to notify you until they show up with the bulldozer.  Who needs due process?
Easements
In most locations, a new 150-foot wide right-of-way will be needed for the proposed transmission line. In a few locations, the new right-of-way will be 200 feet wide.
Who wins here?  The Marcellus industry.  FirstEnergy. And your elected officials owned by both industries.

Who loses?  Ratepayers.  Again.
2 Comments

Promises, Promises

12/31/2014

0 Comments

 
More bad decision-making on the part of the Illinois Commerce Commission brought to light, this time courtesy of the Request for Rehearing filed by Exelon subsidiary ComEd.

Because nobody trusts Clean Line Energy Partners to actually remain a merchant project, the ICC conditioned its recent approval on Clean Line having to come back before the ICC for approval before the cost of RICL can be allocated to Illinois ratepayers, either through PJM or MISO's planning process.

(Raise your hand if you suspect Clean Line is approaching the permitting and cost allocation process backwards -- getting its state permits first before approaching PJM and/or MISO to have its project added to the regional plan and cost allocated to consumers).

The allocation of transmission costs to ratepayers is a FERC-jurisdictional process.  It is not decided by individual states (except it may be addressed through the RTO planning process, but good luck there, Illinois, if RICL gets included in a regional plan).

ComEd has taken issue with this stipulation:
Throughout this proceeding RI has claimed that Illinois customers will not pay the
Project’s costs. Because this fact is critical not just to protect customers, but also underlies RI’s economic case, the Order includes a condition stating that RI must seek Commission approval “prior to recovering any Project costs from Illinois retail ratepayers through PJM or MISO regional cost  allocation[.]”  While ComEd agrees fully with the Commission’s intent, this condition cannot be relied upon to protect customers, for several reasons.

FERC has exclusive authority over  transmission rates under federal law. It is far
from clear that FERC or a federal court would find that Illinois can require an applicant to waive the ability to petition FERC to approve any specific type of transmission rate, or could enforce such a waiver against a FERC finding that it was “just and reasonable” to pass costs on to customers. 

Even if the Commission could void the CPCN if RI (or a successor) made such a request to FERC, it is not clear what effect that “remedy” would have on customers’ rates. By then, the costs would be incurred and the line would be transmitting power in interstate commerce.

The Order’s condition does not apply to other parties (e.g., generators, shippers) who
could ask FERC to modify the rate to shift costs to customers, even if RI never did.

Similarly, the Order does not limit the  authority of FERC itself, which could sua
sponte revise RI’s rates, either in a RI-specific or a more broadly based investigation
proceeding. FERC has the power to “determine the just and reasonable rate … to be
thereafter observed” (16 U.S.C § 824e (2012)) in response to such a complaint or
upon its own motion, not just a filing by RI.

At a minimum, given the critical importance of shielding Illinois customers from Project
costs, the viability of this condition as a means of protecting customers – and potential
alternatives including financial security – warrants deeper examination on rehearing.
In other words, the ICC has been had by empty promises.  FERC can order Illinois ratepayers to pick up the RICL costs and there's nothing the ICC can do about it, except be sucked into a prolonged legal battle at FERC. 

Meanwhile, the ICC's condition does NOTHING to protect ratepayers in other states from having the cost of RICL foisted upon them.

Let's hope the ICC thinks this one through a little more.
0 Comments

How Transmission "Competition" Hurts Reliability and Costs Consumers More

12/31/2014

3 Comments

 
FERC is in love with the idea that "competition" between transmission developers will result in lower costs for consumers, but that's not necessarily true.  While competition between developers for a project identified in a regional plan could provide lower cost projects, it completely fails when developers create and submit projects before any need for them is independently recognized by the RTO, or when merchant developers propose transmission projects outside of regional plans.

Hopefully we've seen the last of the transmission projects designed simply to increase profits for a vertically integrated utility that is conceived before the RTO determines a "need" for it.  In this cart before the horse scenario, the RTO will create a smokescreen of need for an unneeded project and "order" it to be built.    These projects usually fall apart when they are examined with any amount of sincere effort.  When this happens, the RTO will cancel the project, but not before millions are spent for a transmission project that will never be built. 
When an RTO "orders" a project, its cost is allocated to ratepayers in the region.  How much are ratepayers paying each year for cancelled projects resulting from bad planning?

But an even more serious problem is developing as a result of merchant projects proposed outside the regional planning process.  These projects are never submitted into the regional planning process, therefore there is no need for them, either reliability, economic or public policy.  The only review they get from regional planners looks at how their interconnection will affect reliability.   These projects are not "ordered" to be built by regional planners. They are constructed at the expense and initiative of their owners, who recoup their costs through charging negotiated rates for transmission service.  The only goal of merchant lines is to make money.  If they aren't economically feasible, they won't be built.  The choice to build them lies entirely with their owners, even after they have a permit in hand.

But a merchant project proposed outside the regional planning process is never "ordered" and must prove itself "needed" to state and federal regulators in order to receive necessary permits or eminent domain authority.  In that instance, the state or federal regulator is stepping into the regional planning position to determine the need for a transmission project.  State and federal regulators are ill-equipped to make such a determination because they lack the kind of expertise found at an RTO.  The best a regulator can do is rely on the evidence submitted by experts in the case.  Merchant transmission developers can afford any number of experts who will say whatever they're paid to say.  Regulators can only afford in-house expertise, or rely on the experts hired by other parties. The decision is not based on any inherent knowledge, but on expert testimony.

So, what happens when a state finds a merchant transmission project serves some purpose and issues it a conditional permit to construct?  Now we've got two competing regional transmission planners with different projects in their plan.  The RTO version of the plan includes projects it has ordered that it has determined are needed for reliability, economic or public policy purposes, and these projects are being paid for by ratepayers.  The state uses the same plan, but it also includes the permitted merchant project, that doesn't serve any RTO-identified need.  Isn't this too much transmission?

What happens to the ordered regional plan if the merchant project is constructed?  Sometimes this effect is modeled into the plan so that other "ordered" projects may not be needed after all.  A permitted merchant project could cause cancellation of transmission projects in the regional plan before they are completed (but long after they start collecting their costs from ratepayers).  But, remember, a merchant project that has not been "ordered" by a RTO may never be built.  So, if a merchant project causes the cancellation of one or more RTO projects, it could jeopardize reliability if it is suddenly abandoned by its developers before being built.

Dilemma!  Perhaps FERC should take notice of the mess it has created and find a remedy.  I would suggest that projects must be part of a regional plan (whether RTO/ISO or other existing planning authority), and that unneeded merchant projects be prohibited.

Think I'm just nuts?  The Illinois Commerce Commission's recent conditional approval of the Rock Island Clean Line merchant transmission project is already causing doubt about other regionally planned transmission projects that are currently before the ICC.  As the Illinois Farm Bureau pointed out in its recent request for rehearing of the RICL decision, the RICL order is already having "a negative impact on consumers."  The IAA says that the RICL approval is having an immediate effect on two other transmission projects currently before the ICC, a MidAmerican project and an Ameren project, where the ICC staff has suggested that RICL's approval draws into doubt whether these two projects are needed.  And who pays for the other two regionally planned projects if they are cancelled by RICL?  Consumers.
As multiple intervenors have pointed out in this docket that Rock Island’s failure to produce a needs analysis from PJM and/or MISO hurts all of the stakeholders, it seems like this problem could have easily been avoided. The absence of this global analysis produces increased unpredictability and either slows or jeopardizes other legitimate transmission projects. This risk to the consumers could have easily been prevented.
In addition, the IAA points out that there has been no comparative analysis by the ICC as to which of these projects are necessary to promote the development of an effectively competitive electricity market that operates efficiently, are equitable to all customers, and are the least cost means of satisfying those objectives.  Regional planners say that the MidAmerican and Ameren projects are the best options.  The ICC has determined that RICL is the best option, without any attempt at making a fair comparison.

So, what shall it be?  Should we cancel regionally planned projects that conflict with merchant plans and hope the merchant projects are eventually built?  Will the lights go off if none of them get built?  We simply cannot have it both ways. 
Now, other potentially viable and successful transmission projects will have to wait on the sidelines to see if Rock Island can get its act together by, among other things, finding money, qualified employees, suppliers, and numerous regulatory approvals. None of this benefits Illinois consumers, the market, or the reliability of the electric system. Instead, it puts everything at greater risk.
Independent transmission projects based on greed are now actively hurting consumers.  This game must stop.
3 Comments

Merry Fercing Christmas, Mr. Gates!

12/19/2014

1 Comment

 
Looks like FERC has its Grinch hat on this Christmas.  On Wednesday, the Commission issued an Order to Show Cause and Notice of Proposed Penalty to Kevin Gates, his companies, and trader Alan Chen and his companies.

FERC proposes that Gates and his companies cough up $22,358,208.00, while Chen is supposed to come up with $12,160,576 in penalties and disgorgement.  That's nearly $35M.  I'm wondering if Gates and Chen even HAVE $35m?

I've read some of the OE FERC staff report, and I gotta say I'm not feeling the outrage in the same way everyone was outraged at the Enron schemes.  It reads like a witch hunt, and I kinda feel sorry for Gates and Chen.  So, FERC staff is all up on its high horse about protecting consumers, but I'm left wondering where that $4.7M in marginal loss surplus allocations would have ended up if Chen had not made these trades.  It would have ended up in the pockets of other traders.  It would not have ended up in the pockets of electric ratepayers. 

What is FERC going to do with the money, if it manages to prevail in this matter?  $4.7M will be re-distributed to other traders, Robin Hood style.  That leaves $30M in penalties.  What is FERC going to spend that on?  Maybe they could spend it hiring some smarter guys to design and monitor their markets... like Gates and Chen?
1 Comment

National Park Service Misleads the Public about "Donated" Land

12/17/2014

0 Comments

 
The National Park Service and grant-money-grubber The Conservation Fund are misleading the public about land being "donated" to the Delaware Water Gap National Recreation Area.

In recently-generated press, the entities claim that additional park land was purchased by The Conservation Fund and "donated" to the park.
The purchase of these lands by The Conservation Fund from willing and interested sellers without the use of any taxpayer dollars, and their subsequent transfer to the NPS, ensures that they remain in the public trust for future generations to learn from and enjoy and that they will continue to provide both ecological and economic benefits to the region.
The Conservation Fund used YOUR money to purchase these lands, and skimmed a nice "administrative fee" for themselves off the top.  How nice of them to "donate" the land to you. 

The land was purchased with a $66M mitigation fund that the Department of the Interior extorted from utilities PSE&G and PPL, who were allowed to build a gigantic electric transmission project through the heart of the park in exchange for the payoff.  In turn, PSE&G is recovering the $66M from all electric ratepayers in the 13-state PJM Interconnection region.  Under federal rate schemes, PSE&G is even allowed to earn a 12.9% return on the bribe as it slowly depreciates over the life of the transmission line.  In exchange for acting as the middleman and giving your crooked government cover for its outrageous abuse of the public trust, The Conservation Fund is allowed to skim generous "administrative fees" off the fund every year.  The Conservation Fund didn't "donate" anything, they just served as the nonprofit "purchaser" to so that these shady transactions may not shoulder their fair tax burden.

It's a lie and a scam of the highest order.  Addition of border properties to the park does not make the transmission line disappear out of the middle of the park.  Mitigation means your park assets are for sale to the highest bidder.  In this case, the highest bidder was YOU.  Why are the citizens paying to buy additional park property at the Delaware Water Gap NRA, and why is The Conservation Fund being allowed to claim it as a "donation" on its taxes?

The National Park Service ought to be ashamed of itself for lying to the public this way.
0 Comments
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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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